Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | UBNK | |
Entity Registrant Name | United Financial Bancorp, Inc. | |
Entity Central Index Key | 0001501364 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 51,128,727 |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 50,823 | $ 36,434 |
Short-term investments | 104,350 | 61,530 |
Total cash and cash equivalents | 155,173 | 97,964 |
Available-for-sale securities | 848,541 | 973,347 |
Loans held for sale | 16,172 | 78,788 |
Loans receivable (net of allowance for loan losses of $52,041 at March 31, 2019 and $51,636 at December 31, 2018) | 5,697,442 | 5,622,589 |
Federal Home Loan Bank of Boston stock, at cost | 37,702 | 41,407 |
Accrued interest receivable | 25,061 | 24,823 |
Deferred tax asset, net | 27,600 | 32,706 |
Premises and equipment, net | 63,863 | 68,657 |
Operating lease right-of-use assets | 44,377 | |
Finance lease right-of-use assets | 4,356 | |
Goodwill | 116,727 | 116,769 |
Core deposit intangible | 5,607 | 6,027 |
Cash surrender value of bank-owned life insurance | 194,496 | 193,429 |
Other assets | 102,823 | 100,368 |
Total assets | 7,339,940 | 7,356,874 |
Deposits: | ||
Non-interest-bearing | 777,969 | 799,785 |
Interest-bearing | 4,886,283 | 4,870,814 |
Total deposits | 5,664,252 | 5,670,599 |
Mortgagors’ and investors’ escrow accounts | 11,510 | 4,685 |
Advances from the Federal Home Loan Bank of Boston | 737,115 | 797,271 |
Other borrowings | 89,553 | 102,355 |
Operating lease liabilities | 56,265 | |
Finance lease liabilities | 4,585 | |
Accrued expenses and other liabilities | 52,562 | 69,446 |
Total liabilities | 6,615,842 | 6,644,356 |
Stockholders’ equity: | ||
Preferred stock (no par value; 2,000,000 authorized; no shares issued) | 0 | 0 |
Common stock (no par value; authorized 120,000,000 shares; 51,100,720 and 51,104,783 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively) | 539,776 | 539,476 |
Additional paid-in capital | 2,432 | 1,933 |
Unearned compensation - ESOP | (5,181) | (5,238) |
Retained earnings | 203,156 | 206,761 |
Accumulated other comprehensive loss, net of tax | (16,085) | (30,414) |
Total stockholders’ equity | 724,098 | 712,518 |
Total liabilities and stockholders’ equity | $ 7,339,940 | $ 7,356,874 |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses, loans receivable | $ 52,041 | $ 51,636 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 51,100,720 | 51,104,783 |
Common stock, shares outstanding (in shares) | 51,100,720 | 51,104,783 |
Consolidated Statements of Net
Consolidated Statements of Net Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and dividend income: | ||
Loans | $ 64,764 | $ 54,780 |
Securities - taxable interest | 6,475 | 5,498 |
Securities - non-taxable interest | 1,094 | 2,429 |
Securities - dividends | 656 | 637 |
Interest-bearing deposits | 225 | 150 |
Total interest and dividend income | 73,214 | 63,494 |
Interest expense: | ||
Deposits | 19,931 | 11,027 |
Borrowed funds | 6,346 | 5,924 |
Total interest expense | 26,277 | 16,951 |
Net interest income | 46,937 | 46,543 |
Provision for loan losses | 2,043 | 1,939 |
Net interest income after provision for loan losses | 44,894 | 44,604 |
Non-interest income: | ||
Service charges and fees | 6,185 | 6,159 |
Gain on sales of securities, net | 737 | 116 |
Income from mortgage banking activities | 591 | 1,729 |
Bank-owned life insurance income | 1,946 | 1,646 |
Net loss on limited partnership investments | (603) | (590) |
Other income | 124 | 229 |
Total non-interest income | 8,980 | 9,289 |
Non-interest expense: | ||
Salaries and employee benefits | 22,202 | 21,198 |
Service bureau fees | 2,037 | 2,218 |
Occupancy and equipment | 5,540 | 4,949 |
Professional fees | 1,293 | 1,164 |
Marketing and promotions | 858 | 685 |
FDIC insurance assessments | 659 | 739 |
Core deposit intangible amortization | 420 | 337 |
Other | 6,178 | 5,446 |
Total non-interest expense | 39,187 | 36,736 |
Income before income taxes | 14,687 | 17,157 |
Provision for income taxes | 2,030 | 1,370 |
Net income | $ 12,657 | $ 15,787 |
Net income per share: | ||
Basic (in usd per share) | $ 0.25 | $ 0.31 |
Diluted (in usd per share) | $ 0.25 | $ 0.31 |
Weighted-average shares outstanding: | ||
Basic (in shares) | 50,615,059 | 50,474,942 |
Diluted (in shares) | 50,907,092 | 50,996,596 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 12,657 | $ 15,787 | |
Securities available-for-sale: | |||
Unrealized holding gains (losses) | 23,770 | (16,990) | |
Reclassification adjustment for gains realized in operations | [1] | (737) | (116) |
Net unrealized gains (losses) | 23,033 | (17,106) | |
Tax effect - (expense) benefit | (5,075) | 3,933 | |
Net-of-tax amount - securities available-for-sale | 17,958 | (13,173) | |
Interest rate swaps designated as cash flow hedges: | |||
Unrealized (losses) gains | (4,573) | 4,432 | |
Reclassification adjustment for (gains) losses recognized in interest expense | [2] | (223) | 345 |
Net unrealized (losses) gains | (4,796) | 4,777 | |
Tax effect - benefit (expense) | 1,056 | (1,052) | |
Net-of-tax amount - interest rate swaps | (3,740) | 3,725 | |
Pension and Post-retirement plans: | |||
Reclassification adjustment for prior service costs recognized in net periodic benefit cost | 2 | 2 | |
Reclassification adjustment for losses recognized in net periodic benefit cost | [3] | 139 | 123 |
Net change in gains and prior service costs | 141 | 125 | |
Tax effect - expense | (30) | (27) | |
Net-of-tax amount - pension and post-retirement plans | 111 | 98 | |
Total other comprehensive income (loss) | 14,329 | (9,350) | |
Comprehensive income | $ 26,986 | $ 6,437 | |
[1] | Amounts are included in gain on sales of securities, net in the unaudited Consolidated Statements of Net Income. Income tax expense associated with the reclassification adjustment was $162 and $26 for the three months ended March 31, 2019 and 2018, respectively. | ||
[2] | Amounts are included in borrowed funds interest expense in the unaudited Consolidated Statements of Net Income. Income tax (expense) benefit associated with the reclassification adjustment for the three months ended March 31, 2019 and 2018 was $(49) and $76, respectively. | ||
[3] | Amounts are included in salaries and employee benefits expense in the unaudited Consolidated Statements of Net Income. Income tax benefit associated with the reclassification adjustment for losses recognized in the net periodic benefit cost for the three months ended March 31, 2019 and 2018 was $31 and $27, respectively. |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Income tax benefit (expense) associated with the reclassification adjustment realized in net income for sale of securities | $ (162) | $ (26) |
Income tax (expense) benefit associated with the reclassification adjustment for expense realized in net income for interest rate swaps | (49) | 76 |
Income tax benefit associated with the reclassification adjustment for losses recognized in net periodic benefit cost | $ 31 | $ 27 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Unearned Compensation - ESOP | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance (in shares) at Dec. 31, 2017 | 51,044,752 | |||||
Balance at Dec. 31, 2017 | $ 693,328 | $ 537,576 | $ 4,713 | $ (5,466) | $ 168,345 | $ (11,840) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income | 6,437 | 15,787 | (9,350) | |||
Common stock repurchased (in shares) | (94,900) | |||||
Common stock repurchased | (1,551) | $ (1,551) | ||||
Stock-based compensation expense | 718 | 718 | ||||
ESOP shares released or committed to be released | 95 | 38 | 57 | |||
Shares issued for stock options exercised (in shares) | 22,808 | |||||
Shares issued for stock options exercised | 180 | $ 365 | (185) | |||
Shares issued for restricted stock grants (in shares) | 8,763 | |||||
Shares issued for restricted stock grants | 0 | $ 147 | (147) | |||
Cancellation of shares for tax withholding (in shares) | (4,756) | |||||
Cancellation of shares for tax withholding | (85) | $ 0 | (85) | |||
Dividends paid ($0.12 and $0.12 per common share) | (6,122) | (6,122) | ||||
Balance (in shares) at Mar. 31, 2018 | 50,976,667 | |||||
Balance at Mar. 31, 2018 | $ 693,000 | $ 536,537 | 5,052 | (5,409) | 180,777 | (23,957) |
Balance (in shares) at Dec. 31, 2018 | 51,104,783 | 51,104,783 | ||||
Balance at Dec. 31, 2018 | $ 712,518 | $ 539,476 | 1,933 | (5,238) | 206,761 | (30,414) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income | 26,986 | 12,657 | 14,329 | |||
Stock-based compensation expense | 580 | 580 | ||||
ESOP shares released or committed to be released | $ 86 | 29 | 57 | |||
Shares issued for stock options exercised (in shares) | 51,513 | 51,513 | ||||
Shares issued for stock options exercised | $ 468 | $ 807 | (339) | |||
Shares cancelled for restricted stock forfeitures (in shares) | (37,292) | |||||
Shares cancelled for restricted stock forfeitures | 0 | $ (507) | 507 | |||
Cancellation of shares for tax withholding (in shares) | (18,284) | |||||
Cancellation of shares for tax withholding | (278) | $ 0 | (278) | |||
Dividends paid ($0.12 and $0.12 per common share) | $ (6,075) | (6,075) | ||||
Balance (in shares) at Mar. 31, 2019 | 51,100,720 | 51,100,720 | ||||
Balance at Mar. 31, 2019 | $ 724,098 | $ 539,776 | $ 2,432 | $ (5,181) | $ 203,156 | $ (16,085) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Retained Earnings | ||
Dividends paid per common share (in usd per share) | $ 0.12 | $ 0.12 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 12,657 | $ 15,787 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of premiums and discounts on investments, net | 1,767 | 1,205 |
Amortization of intangible assets and purchase accounting marks, net | 533 | 305 |
Amortization of subordinated debt issuance costs | 32 | 32 |
Stock-based compensation expense | 580 | 718 |
ESOP expense | 86 | 95 |
Provision for loan losses | 2,043 | 1,939 |
Gains on sales of securities, net | (737) | (116) |
Net realized (gain) loss on marketable equity securities | (53) | 24 |
Loans originated for sale | (27,364) | (49,220) |
Principal balance of loans sold | 89,980 | 99,899 |
Decrease (increase) in mortgage servicing asset | 48 | (1,600) |
Gain on sales of other real estate owned | (26) | (13) |
Net change in mortgage banking fair value adjustments | 11 | 1,488 |
Loss on disposal of equipment | 29 | 68 |
Write-downs of other real estate owned | 21 | 101 |
Depreciation and amortization of premises and equipment | 2,104 | 1,863 |
Net loss on limited partnership investments | 603 | 590 |
Deferred income tax expense (benefit) | 1,057 | (200) |
Increase in cash surrender value of bank-owned life insurance | (1,525) | (1,420) |
Income recognized from death benefits on bank-owned life insurance | (421) | (226) |
Right-of-use asset depreciation | 1,294 | |
Amortization of lease liabilities | (1,050) | |
Lease incentives received | 117 | |
Net change in: | ||
Deferred loan fees and premiums | (115) | 70 |
Accrued interest receivable | (238) | (1) |
Other assets | (7,742) | (3,061) |
Accrued expenses and other liabilities | (5,128) | 1,445 |
Net cash provided by operating activities | 68,563 | 69,772 |
Cash flows from investing activities: | ||
Proceeds from sales of available-for-sale securities | 256,198 | 58,676 |
Proceeds from calls and maturities of available-for-sale securities | 4,425 | 18,250 |
Principal payments on available-for-sale securities | 13,809 | 18,412 |
Purchases of available-for-sale securities | (137,810) | (80,660) |
Redemption of FHLBB and other restricted stock | 5,635 | 2,634 |
Purchase of FHLBB stock | (1,930) | (2,335) |
Proceeds from sale of other real estate owned | 267 | 829 |
Purchases of loans | (53,383) | (61,570) |
Loan originations, net of principal repayments | (23,805) | 15,906 |
Proceeds from bank-owned life insurance death benefits | 854 | 368 |
Purchases of bank-owned life insurance | 0 | (30,000) |
Proceeds from redemption of bank-owned life insurance | 0 | 26,292 |
Purchases of premises and equipment | (928) | (2,061) |
Net cash provided by (used in) investing activities | 63,332 | (35,259) |
Cash flows from financing activities: | ||
Net decrease in non-interest-bearing deposits | (21,816) | (25,001) |
Net increase in interest-bearing deposits | 15,469 | 109,351 |
Net increase in mortgagors’ and investors’ escrow accounts | 6,825 | 3,551 |
Net decrease in short-term FHLBB advances | (75,000) | (132,000) |
Repayments of long-term FHLBB advances | (144) | (385) |
Proceeds from long-term FHLBB advances | 15,000 | 0 |
Net change in other borrowings | (9,070) | (1,877) |
Principal payments on finance leases | (65) | |
Proceeds from exercise of stock options | 468 | 180 |
Common stock repurchased | 0 | (1,551) |
Cancellation of shares for tax withholding | (278) | (85) |
Cash dividend paid on common stock | (6,075) | (6,122) |
Net cash used in financing activities | (74,686) | (53,939) |
Net increase (decrease) in cash and cash equivalents | 57,209 | (19,426) |
Cash and cash equivalents, beginning of period | 97,964 | 88,668 |
Cash and cash equivalents, end of period | 155,173 | 69,242 |
Cash paid during the year for: | ||
Interest | 25,349 | 15,446 |
Income taxes, net | 783 | 401 |
Transfer of loans to other real estate owned | 302 | 698 |
Change in due to broker, investment purchases | 0 | $ 6 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 1,548 | |
Operating cash flows from finance leases | 63 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Financing cash flows from finance leases | 65 | |
Right-of-use assets obtained in exchange for lease obligations | ||
Operating leases | 44,377 | |
Finance leases | $ 4,356 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of Operations United Financial Bancorp, Inc. (the “Company” or “United”) is headquartered in Hartford, Connecticut, and through United Bank (the “Bank”) and various subsidiaries, delivers financial services to individuals, families and businesses primarily throughout Connecticut and Massachusetts through 59 banking offices, its commercial loan production offices, its mortgage loan production offices, 72 ATMs, telephone banking, mobile banking and online banking ( www.bankatunited.com ). Basis of Presentation The consolidated interim financial statements and the accompanying notes presented in this report include the accounts of the Company, the Bank and the Bank’s wholly-owned subsidiaries, United Bank Mortgage Company, United Bank Investment Corp., Inc., United Bank Commercial Properties, Inc., United Bank Residential Properties, Inc., United Wealth Management, Inc., United Bank Investment Sub, Inc., UB Properties, LLC, United Financial Realty HC, Inc. and UCB Securities, Inc. II. In addition, the Bank has a real estate investment trust subsidiary, United Financial Business Trust I, which is a wholly owned subsidiary of United Financial Realty HC, Inc. The consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included in the interim unaudited consolidated financial statements. Interim results are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any future period. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s 2018 audited consolidated financial statements and notes thereto included in United Financial Bancorp, Inc.’s Annual Report on Form 10-K as of and for the year ended December 31, 2018 . Common Share Repurchases The Company is chartered in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized, but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances. Reclassifications Certain reclassifications have been made in prior periods’ consolidated financial statements to conform to the 2019 presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash equivalents. Use of Estimates The preparation of the consolidated interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results in the future could vary from the amounts derived from management’s estimates and assumptions. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the realizability of deferred tax assets, the evaluation of securities for other-than-temporary impairment, the valuation of derivative instruments and hedging activities, and goodwill impairment valuations. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Note 2. Recent Accounting Pronouncements Recently Adopted Accounting Principles Previously Disclosed Effective January 1, 2019, the Company adopted the following Accounting Standards Updates (“ASUs”): • ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvement to Nonemployee Share-Based Payment Accounting • ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities • ASU No. 2016-02, Leases (Topic 842) • ASU No. 2018-11, Leases (Topic 842): Targeted Improvements • ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors See Note 3, “Securities”, and Note 5, “Leases” for further discussion of the impact of ASU No. 2017-08, ASU No. 2016-02, ASU No. 2018-11, and ASU No. 2018-20. The adoption of ASU No. 2018-07 did not have a material impact on the Company’s consolidated interim financial statements. Accounting Standards Issued but Not Yet Adopted The following list identifies ASUs applicable to the Company that have been issued but are not yet effective: Disclosure In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this Update remove the disclosure requirements that no longer are considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant. The amendments in this Update are effective for fiscal years ending after December 15, 2020. Early adoption is permitted and amendments should be applied on a retrospective basis to all periods presented. This ASU will affect the Company’s disclosure only and will not have a financial statement impact. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU updates disclosure requirements of Accounting Standards Codification (“ASC”) Topic 820 in order to improve the effectiveness of the disclosures. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments affecting changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments are to be applied retrospectively to all periods presented upon their effective date. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. This ASU will affect the Company’s disclosures only and will not have a financial statement impact. Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the Board’s guidance on the impairment of financial instruments. The ASU adds to GAAP an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. For public business entities that are SEC filers, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The expected credit loss model will require a financial asset to be presented at the net amount expected to be collected. The impact on adoption is a one-time adjustment to retained earnings. The Company is evaluating the provisions of ASU No. 2016-13 and will closely monitor developments and additional guidance to determine the potential impact on the Company’s consolidated financial statements. The ASU is expected to increase loan loss reserves, the amount of which is uncertain at this time. The Company has formed a committee led by the Bank’s Chief Credit Officer, which includes the Chief Financial Officer and Chief Risk Officer, to assist in identifying, implementing and evaluating the impact of the required changes to loan loss estimation models and processes. The Company has evaluated portfolio segments and methodologies and is evaluating the control environment under the new standard. Additionally, the Company has initiated parallel testing, however any results are preliminary. The Company has engaged a third party to perform a review of model governance and related internal controls, the outcome of which could change the impact of ASU No. 2016-13. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 3. Securities The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities classified as available-for-sale at March 31, 2019 and December 31, 2018 are as follows: Amortized Gross Gross Fair (In thousands) March 31, 2019 Available-for-sale: Government-sponsored residential mortgage-backed securities $ 202,586 $ 506 $ (1,162 ) $ 201,930 Government-sponsored residential collateralized debt obligations 131,755 275 (503 ) 131,527 Government-sponsored commercial mortgage-backed securities 28,617 — (213 ) 28,404 Government-sponsored commercial collateralized debt obligations 151,545 94 (5,688 ) 145,951 Asset-backed securities 159,382 240 (1,451 ) 158,171 Corporate debt securities 94,959 276 (769 ) 94,466 Obligations of states and political subdivisions 87,912 734 (554 ) 88,092 Total available-for-sale securities $ 856,756 $ 2,125 $ (10,340 ) $ 848,541 December 31, 2018 Available-for-sale: Government-sponsored residential mortgage-backed securities $ 208,916 $ — $ (4,818 ) $ 204,098 Government-sponsored residential collateralized debt obligations 172,468 270 (2,019 ) 170,719 Government-sponsored commercial mortgage-backed securities 28,694 — (1,016 ) 27,678 Government-sponsored commercial collateralized debt obligations 155,091 — (6,865 ) 148,226 Asset-backed securities 102,371 15 (1,891 ) 100,495 Corporate debt securities 86,462 48 (3,280 ) 83,230 Obligations of states and political subdivisions 250,593 425 (12,117 ) 238,901 Total available-for-sale securities $ 1,004,595 $ 758 $ (32,006 ) $ 973,347 At March 31, 2019 , the net unrealized loss on securities available-for-sale of $8.2 million , net of an income tax benefit of $1.8 million , or $6.4 million , was included in accumulated other comprehensive loss on the unaudited Consolidated Statement of Condition. The amortized cost and fair value of debt securities at March 31, 2019 by contractual maturities are presented below. Actual maturities may differ from contractual maturities because some securities may be called or repaid without any penalties. Also, because mortgage-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary. Available-for-Sale Amortized Fair (In thousands) Maturity: Within 1 year $ — $ — After 1 year through 5 years 10,747 10,820 After 5 years through 10 years 87,345 86,743 After 10 years 84,779 84,995 182,871 182,558 Government-sponsored residential mortgage-backed securities 202,586 201,930 Government-sponsored residential collateralized debt obligations 131,755 131,527 Government-sponsored commercial mortgage-backed securities 28,617 28,404 Government-sponsored commercial collateralized debt obligations 151,545 145,951 Asset-backed securities 159,382 158,171 Total available-for-sale debt securities $ 856,756 $ 848,541 Effective January 1, 2018, the Company adopted FASB ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which required the Company to recognize the changes in fair value of marketable equity securities to be recorded in the Consolidated Statements of Net Income . The cumulative-effect adjustment resulting from the adoption of this new standard was a one-time adjustment that increased retained earnings and increased accumulated other comprehensive losses on January 1, 2018 by $177,000 . For the three months ended March 31, 2019 and 2018 , there were $53,000 and ( $24,000 ), respectively, in realized gains (losses) recognized in other income in the Consolidated Statements of Net Income on marketable equity securities. At March 31, 2019 and December 31, 2018, the fair value of marketable equity securities included in other assets on the Consolidated Statements of Condition was $409,000 and $356,000 , respectively. Effective January 1, 2019, the Company adopted FASB ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which required the Company to recognize the amortization period for callable debt securities held at a premium as the period from purchase to earliest call date. The cumulative-effect adjustment resulting from the adoption of this new standard was a one-time adjustment that decreased retained earnings by $10.2 million . At March 31, 2019 and December 31, 2018, the Company had securities with a fair value of $369.6 million and $438.8 million , respectively, pledged as derivative collateral, collateral for reverse repurchase borrowings, collateral for municipal deposit exposure, and collateral for FHLBB borrowing capacity. For the three months ended March 31, 2019 and 2018 , gross gains of $2.9 million and $347,000 , respectively, were realized on the sales of available-for-sale securities. There were gross losses of $2.1 million and $231,000 realized on the sale of available-for-sale securities for the three months ended March 31, 2019 and 2018 , respectively. As of March 31, 2019 , the Company did not have any exposure to private-label mortgage-backed securities. The Company also did not own any single security with an aggregate book value in excess of 10% of the Company’s stockholders’ equity. As of March 31, 2019 , the fair value of the obligations of states and political subdivisions portfolio was $88.1 million , with no significant geographic or issuer exposure concentrations. Of the total state and political obligations of $88.1 million , $38.1 million were representative of general obligation bonds, for which $24.6 million are general obligations of political subdivisions of the respective state, rather than general obligations of the state itself. The following table summarizes gross unrealized losses and fair value, aggregated by category and length of time the securities have been in a continuous unrealized loss position, as of March 31, 2019 and December 31, 2018 : Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) March 31, 2019 Available-for-sale: Government-sponsored residential mortgage-backed securities $ — $ — $ 123,622 $ (1,162 ) $ 123,622 $ (1,162 ) Government-sponsored residential collateralized debt obligations — — 63,316 (503 ) 63,316 (503 ) Government-sponsored commercial mortgage-backed securities — — 28,404 (213 ) 28,404 (213 ) Government-sponsored commercial collateralized debt obligations — — 138,443 (5,688 ) 138,443 (5,688 ) Asset-backed securities 77,129 (848 ) 26,495 (603 ) 103,624 (1,451 ) Corporate debt securities 4,460 (55 ) 39,222 (714 ) 43,682 (769 ) Obligations of states and political subdivisions 856 (3 ) 29,564 (551 ) 30,420 (554 ) Total available-for-sale securities $ 82,445 $ (906 ) $ 449,066 $ (9,434 ) $ 531,511 $ (10,340 ) December 31, 2018 Available-for-sale: Government-sponsored residential mortgage-backed securities $ 97,634 $ (1,590 ) $ 106,464 $ (3,228 ) $ 204,098 $ (4,818 ) Government-sponsored residential collateralized debt obligations 5,093 (54 ) 107,291 (1,965 ) 112,384 (2,019 ) Government-sponsored commercial mortgage-backed securities — — 27,678 (1,016 ) 27,678 (1,016 ) Government-sponsored commercial collateralized debt obligations 15,787 (176 ) 132,439 (6,689 ) 148,226 (6,865 ) Asset-backed securities 62,444 (1,272 ) 23,426 (619 ) 85,870 (1,891 ) Corporate debt securities 43,937 (1,394 ) 33,245 (1,886 ) 77,182 (3,280 ) Obligations of states and political subdivisions 89,312 (2,204 ) 137,590 (9,913 ) 226,902 (12,117 ) Total available-for-sale securities $ 314,207 $ (6,690 ) $ 568,133 $ (25,316 ) $ 882,340 $ (32,006 ) Of the available-for-sale securities summarized above as of March 31, 2019 , 25 securities had unrealized losses equaling 1.1% of the amortized cost basis for less than twelve months and 97 securities had unrealized losses of 2.1% of the amortized cost basis for twelve months or more. As of December 31, 2018 , of the available-for sale securities, 95 securities had unrealized losses equaling 2.1% of the amortized cost basis for less than twelve months and 155 securities had unrealized losses equaling 4.3% of the amortized cost basis for twelve months or more. Based on its detailed quarterly review of the securities portfolio, management believes that no individual unrealized loss as of March 31, 2019 represents an other-than-temporary impairment. Among other things, the other-than-temporary impairment review of the investment securities portfolio focuses on the combined factors of percentage and length of time by which a security is below book value as well as consideration of issuer specific information (present value of cash flows expected to be collected, issuer rating changes and trends, credit worthiness and review of underlying collateral), broad market details and the Company’s intent to sell the security or if it is more likely than not that the Company will be required to sell the debt security before recovering its cost. The Company also considers whether the depreciation is due to interest rates, market changes, or credit risk. The following paragraphs outline the Company’s position related to unrealized losses in its investment securities portfolio at March 31, 2019 . Government-sponsored residential mortgage backed securities, residential collateralized debt obligations, commercial mortgage-backed securities, and commercial collateralized debt obligations. The unrealized losses on certain securities within the Company’s government-sponsored mortgage-backed and collateralized debt obligation portfolios were caused by the higher overall interest rate levels compared to the market interest rates when purchases were initiated. The Company monitors this risk, and does not expect these securities to settle at a price less than the par value of the securities. Asset-backed securities . The unrealized losses on certain securities within the Company’s asset-backed securities portfolio were largely driven by the spread widening of these securities as a response to the market volatility in the fourth quarter of 2018, with limited tightening occurring in the first quarter of 2019. Based on the credit profiles and asset qualities of the individual securities, management does not believe that the securities have suffered from any credit related losses at this time. The Company does not expect these securities to settle at a price less than the par value of the securities. Corporate debt securities. The unrealized losses on corporate debt securities relates to securities with no company specific concentration. The unrealized loss was due to an upward shift in interest rates that resulted in a negative impact to the respective bonds’ pricing, relative to the time of purchase. Obligations of states and political subdivisions. The unrealized loss on obligations of states and political subdivisions relates to several securities, with no geographic concentration. The unrealized loss was largely due to an upward shift in the rates relative to the time of purchase of certain securities. The Company will continue to review its entire portfolio for other-than-temporarily impaired securities. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans Receivable and Allowance for Loan Losses | Note 4. Loans Receivable and Allowance for Loan Losses A summary of the Company’s loan portfolio is as follows: March 31, 2019 December 31, 2018 Amount Percent Amount Percent (Dollars in thousands) Commercial real estate loans: Owner-occupied $ 439,366 7.7 % $ 443,398 7.8 % Investor non-owner occupied 1,932,137 33.7 1,911,070 33.8 Construction 94,649 1.6 87,493 1.5 Total commercial real estate loans 2,466,152 43.0 2,441,961 43.1 Commercial business loans 920,165 16.1 886,770 15.7 Consumer loans: Residential real estate 1,322,423 23.1 1,313,373 23.2 Home equity 583,368 10.2 583,454 10.3 Residential construction 13,620 0.2 20,632 0.4 Other consumer 425,854 7.4 410,249 7.3 Total consumer loans 2,345,265 40.9 2,327,708 41.2 Total loans 5,731,582 100.0 % 5,656,439 100.0 % Net deferred loan costs and premiums 17,901 17,786 Allowance for loan losses (52,041 ) (51,636 ) Loans - net $ 5,697,442 $ 5,622,589 Allowance for Loan Losses Management has established a methodology to determine the adequacy of the allowance for loan losses (“ALL”) that assesses the risks and losses inherent in the loan portfolio. The ALL is established as embedded losses are estimated to have occurred through the provisions for losses charged against operations and is maintained at a level that management considers adequate to absorb losses in the loan portfolio. Management’s judgment in determining the adequacy of the allowance is inherently subjective and is based on past loan loss experience, known and inherent losses and size of the loan portfolios, an assessment of current economic and real estate market conditions, estimates of the current value of underlying collateral, review of regulatory authority examination reports and other relevant factors. An allowance is maintained for impaired loans to reflect the difference, if any, between the carrying value of the loan and the present value of the projected cash flows, observable fair value or collateral value. Loans are charged-off against the ALL when management believes that the uncollectibility of principal is confirmed. Any subsequent recoveries are credited to the ALL when received. In connection with the determination of the ALL, management obtains independent appraisals for significant properties, when considered necessary. The ALL is maintained at a level estimated by management to provide for probable losses inherent within the loan portfolio. Probable losses are estimated based upon a quarterly review of the loan portfolio, which includes historic default and loss experience, specific problem loans, risk rating profile, economic conditions and other pertinent factors which, in management’s judgment, warrant current recognition in the loss estimation process. The adequacy of the ALL is subject to considerable assumptions and judgment used in its determination. Therefore, actual losses could differ materially from management’s estimate if actual conditions differ significantly from the assumptions utilized. These conditions include economic factors in the Company’s market and nationally, industry trends and concentrations, real estate values and trends, and the financial condition and performance of individual borrowers. The Company’s general practice is to identify problem credits early and recognize full or partial charge-offs as promptly as practicable when it is determined that the collection of loan principal is unlikely. The Company recognizes full or partial charge-offs on collateral dependent impaired loans when the collateral is deemed to be insufficient to support the carrying value of the loan. The Company does not recognize a recovery when an updated appraisal indicates a subsequent increase in value. At March 31, 2019 , the Company had an allowance for loan losses of $52.0 million , or 0.91% , of total loans as compared to an allowance for loan losses of $51.6 million , or 0.91% , of total loans at December 31, 2018 . Management believes that the allowance for loan losses is adequate and consistent with asset quality indicators and that it represents the best estimate of probable losses inherent in the loan portfolio. There are three components for the allowance for loan loss calculation: General component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: owner-occupied and investor non-owner occupied commercial real estate, commercial and residential construction, commercial business, residential real estate, home equity, and other consumer. Management uses a rolling average of historical losses based on a 12-quarter loss history to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels and trends in delinquencies; level and trend of charge-offs and recoveries; trends in volume and types of loans; effects of changes in risk selection and underwriting standards; experience and depth of management; changes in weighted average risk ratings; and national and local economic trends and conditions. The general component of the allowance for loan losses also includes a reserve based upon historical loss experience for loans which were acquired and have subsequently evidenced measured credit deterioration following initial acquisition. Our acquired loan portfolio is comprised of purchased loans that show no evidence of deterioration subsequent to acquisition and therefore are not covered by the allowance for loan losses. Acquired impaired loans are loans with evidence of deterioration subsequent to acquisition and are considered in establishing the allowance for loan losses. There were no changes in the Company’s methodology pertaining to the general component of the allowance for loan losses during 2019. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate and home equity loans – The Company establishes maximum loan-to-value and debt-to-income ratios and minimum credit scores as an integral component of the underwriting criteria. Loans in these segments are collateralized by residential real estate and repayment is dependent on the income and credit quality of the individual borrower. Within the qualitative allowance factors, national and local economic trends including unemployment rates and potential declines in property value, are key elements reviewed as a component of establishing the appropriate allocation. Overall economic conditions, unemployment rates and housing price trends will influence the underlying credit quality of these segments. Owner-occupied and investor non-owner occupied commercial real estate (“Owner-occupied CRE” and “Investor CRE”) – Loans in these segments are primarily income-producing properties throughout Connecticut, western Massachusetts, and other select markets in the Northeast. The underlying cash flows generated by the properties could be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management obtains rent rolls annually, continually monitors the cash flows of these loans and performs stress testing. Commercial and residential construction loans – Loans in this segment primarily include commercial real estate development and residential subdivision loans for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial business loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy and its effect on business profitability and cash flow could have an effect on the credit quality in this segment. Other consumer – Loans in this segment generally consist of loans on high-end retail boats and small yachts, new and used automobiles, home improvement loans, loans collateralized by deposit accounts and unsecured personal loans. These loans are secured or unsecured and repayment is dependent on the credit quality of the individual borrower. For acquired loans accounted for under ASC 310-30, our accretable discount is estimated based upon our expected cash flows for these loans. To the extent that we experience a deterioration in borrower credit quality resulting in a decrease in our expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established through a provision based on our estimate of future credit losses over the remaining life of the loans. Allocated component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial business, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Updated property evaluations are obtained at the time of impairment and serve as the basis for the loss allocation if foreclosure is probable or the loan is collateral dependent. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans which are placed on non-accrual status, or deemed troubled debt restructures, are considered impaired by the Company and subject to impairment testing for possible partial or full charge-off when loss can be reasonably determined. Generally, when all contractual payments on a loan are not expected to be collected, or the loan has failed to make contractual payments for a period of 90 days or more, a loan is placed on non-accrual status. In accordance with the Company's loan policy, losses on open and closed end consumer loans are recognized within a period of 120 days past due. For commercial loans, there is no threshold in terms of days past due for losses to be recognized as a result of the complexity in reasonably determining losses within a set time frame. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. When a loan is determined to be impaired, the Company makes a determination if the repayment of the obligation is collateral dependent. As a majority of impaired loans are collateralized by real estate, appraisals on the underlying value of the property securing the obligation are utilized in determining the specific impairment amount that is allocated to the loan as a component of the allowance calculation. If the loan is collateral dependent, an updated appraisal is obtained within a short period of time from the date the loan is determined to be impaired; typically no longer than 30 days for a residential property and 90 days for a commercial real estate property. The appraisal and the appraised value are reviewed for adequacy and then further discounted for estimated disposition costs in order to determine the impairment amount. The Company updates the appraised value at least annually and on a more frequent basis if current market factors indicate a potential change in valuation. The majority of the Company’s loans are collateralized by real estate located in central and eastern Connecticut and western Massachusetts in addition to a portion of the commercial real estate loan portfolio located in the Northeast region of the United States. Accordingly, the collateral value of a substantial portion of the Company’s loan portfolio and real estate acquired through foreclosure is susceptible to changes in market conditions in these areas. Unallocated component An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Credit Quality Information The Company utilizes a nine -grade internal loan rating system for residential and commercial real estate, construction, commercial business and other consumer loans as follows: Loans rated 1 – 5: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 6: Loans in this category are considered “special mention.” These loans reflect signs of potential weakness and are being closely monitored by management. Loans rated 7: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor and there is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 8: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 9: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted. At the time of loan origination, a risk rating based on this nine point grading system is assigned to each loan based on the loan officer’s assessment of risk. For residential real estate and other consumer loans, the Company considers factors such as updated FICO scores, employment status, home prices, loan to value and geography. Residential real estate and other consumer loans are pass rated unless their payment history reveals signs of deterioration, which may result in modifications to the original contractual terms. In situations which require modification to the loan terms, the internal loan grade will typically be reduced to substandard. More complex loans, such as commercial business loans and commercial real estate loans require that the Company’s internal credit department further evaluate the risk rating of the individual loan, with the credit department and Chief Credit Officer having final determination of the appropriate risk rating. These more complex loans and relationships receive an in-depth analysis and periodic review to assess the appropriate risk rating on a post-closing basis with changes made to the risk rating as the borrower’s and economic conditions warrant. The credit quality of the Company’s loan portfolio is reviewed by a third-party risk assessment firm throughout the year and by the Company’s internal credit management function. The internal and external analysis of the loan portfolio is utilized to identify and quantify loans with higher than normal risk. Loans having a higher risk profile are assigned a risk rating corresponding to the level of weakness identified in the loan. All loans risk rated Special Mention, Substandard or Doubtful are reviewed by management not less than on a quarterly basis to assess the level of risk and to ensure that appropriate actions are being taken to minimize potential loss exposure. Loans identified as being loss are normally fully charged off. The following table presents the Company’s loans by risk rating at March 31, 2019 and December 31, 2018 : Owner-Occupied CRE Investor CRE Construction Commercial Business Residential Real Estate Home Equity Other Consumer (In thousands) March 31, 2019 Loans rated 1-5 $ 406,900 $ 1,904,846 $ 105,466 $ 874,939 $ 1,302,651 $ 576,626 $ 423,539 Loans rated 6 17,664 9,100 2,068 31,337 2,644 916 — Loans rated 7 14,802 18,191 735 13,889 17,128 5,826 2,315 Loans rated 8 — — — — — — — Loans rated 9 — — — — — — — $ 439,366 $ 1,932,137 $ 108,269 $ 920,165 $ 1,322,423 $ 583,368 $ 425,854 December 31, 2018 Loans rated 1-5 $ 410,403 $ 1,884,767 $ 104,848 $ 844,541 $ 1,294,623 $ 576,509 $ 407,935 Loans rated 6 17,134 6,544 1,994 28,385 2,429 740 — Loans rated 7 15,861 19,759 1,283 13,844 16,321 6,205 2,314 Loans rated 8 — — — — — — — Loans rated 9 — — — — — — — $ 443,398 $ 1,911,070 $ 108,125 $ 886,770 $ 1,313,373 $ 583,454 $ 410,249 Activity in the allowance for loan losses for the periods ended March 31, 2019 and 2018 was as follows: Owner-Occupied CRE Investor CRE Construction Commercial Residential Real Estate Home Equity Other Consumer Unallocated Total (In thousands) Three Months Ended March 31, 2019 Balance, beginning of period $ 4,459 $ 17,011 $ 1,653 $ 10,961 $ 7,971 $ 3,220 $ 4,381 $ 1,980 $ 51,636 Provision (credit) for loan losses (311 ) 661 69 507 (135 ) 455 677 120 2,043 Loans charged off — — (149 ) (518 ) (108 ) (349 ) (938 ) — (2,062 ) Recoveries of loans previously charged off — 5 — 60 97 22 240 — 424 Balance, end of period $ 4,148 $ 17,677 $ 1,573 $ 11,010 $ 7,825 $ 3,348 $ 4,360 $ 2,100 $ 52,041 Three Months Ended March 31, 2018 Balance, beginning of period $ 3,754 $ 15,916 $ 1,601 $ 10,608 $ 7,694 $ 3,258 $ 2,523 $ 1,745 $ 47,099 Provision for loan losses 173 94 53 796 203 252 268 100 1,939 Loans charged off — (64 ) (21 ) (653 ) (181 ) (349 ) (425 ) — (1,693 ) Recoveries of loans previously charged off — 37 — 230 69 56 178 — 570 Balance, end of period $ 3,927 $ 15,983 $ 1,633 $ 10,981 $ 7,785 $ 3,217 $ 2,544 $ 1,845 $ 47,915 Further information pertaining to the allowance for loan losses and impaired loans at March 31, 2019 and December 31, 2018 follows: Owner-Occupied CRE Investor CRE Construction Commercial Residential Real Estate Home Equity Other Consumer Unallocated Total (In thousands) March 31, 2019 Allowance related to loans individually evaluated and deemed impaired $ — $ — $ 34 $ — $ 72 $ 31 $ 236 $ — $ 373 Allowance related to loans collectively evaluated and not deemed impaired 4,148 17,677 1,539 11,010 7,753 3,317 4,124 2,100 51,668 Total allowance for loan losses $ 4,148 $ 17,677 $ 1,573 $ 11,010 $ 7,825 $ 3,348 $ 4,360 $ 2,100 $ 52,041 Loans deemed impaired $ 2,402 $ 6,491 $ 869 $ 8,806 $ 20,583 $ 8,002 $ 1,314 $ 48,467 Loans not deemed impaired 436,964 1,925,485 107,400 911,359 1,300,001 575,366 423,468 5,680,043 Loans acquired with deteriorated credit quality — 161 — — 1,839 — 1,072 3,072 Total loans $ 439,366 $ 1,932,137 $ 108,269 $ 920,165 $ 1,322,423 $ 583,368 $ 425,854 $ 5,731,582 December 31, 2018 Allowance related to loans individually evaluated and deemed impaired $ — $ — $ 92 $ 114 $ 120 $ 1 $ 243 $ — $ 570 Allowance related to loans collectively evaluated and not deemed impaired 4,459 17,011 1,561 10,847 7,851 3,219 4,138 1,980 51,066 Total allowance for loan losses $ 4,459 $ 17,011 $ 1,653 $ 10,961 $ 7,971 $ 3,220 $ 4,381 $ 1,980 $ 51,636 Loans deemed impaired $ 3,034 $ 6,895 $ 1,047 $ 5,219 $ 20,114 $ 8,257 $ 1,318 $ 45,884 Loans not deemed impaired 440,364 1,903,998 107,078 881,551 1,291,255 575,197 407,851 5,607,294 Loans acquired with deteriorated credit quality — 177 — — 2,004 — 1,080 3,261 Total loans $ 443,398 $ 1,911,070 $ 108,125 $ 886,770 $ 1,313,373 $ 583,454 $ 410,249 $ 5,656,439 Management has established the allowance for loan loss in accordance with GAAP at March 31, 2019 based on the current risk assessment and level of loss that is believed to exist within the portfolio. This level of reserve is deemed an appropriate estimate of probable loan losses inherent in the loan portfolio as of March 31, 2019 based upon the analysis conducted and given the portfolio composition, delinquencies, charge offs and risk rating changes experienced during the first three months of 2019 and the three -year evaluation period utilized in the analysis. Based on the qualitative assessment of the portfolio and in thorough consideration of non-performing loans, management believes that the allowance for loan losses properly supports the level of associated loss and risk. The following is a summary of past due and non-accrual loans at March 31, 2019 and December 31, 2018 , including purchased credit impaired loans: 30-59 Days Past Due 60-89 Days Past Due Past Due 90 Total Past Due Past Due Loans on (In thousands) March 31, 2019 Owner-occupied CRE $ 172 $ 210 $ 778 $ 1,160 $ — $ 1,880 Investor CRE 2,725 601 — 3,326 — 739 Construction — — 736 736 — 736 Commercial business loans 3,505 986 3,129 7,620 2,130 2,500 Residential real estate 3,390 2,724 9,153 15,267 1,839 16,304 Home equity 2,732 1,062 4,315 8,109 — 5,800 Other consumer 838 279 1,489 2,606 264 1,240 Total $ 13,362 $ 5,862 $ 19,600 $ 38,824 $ 4,233 $ 29,199 December 31, 2018 Owner-occupied CRE $ 1,745 $ 7 $ 352 $ 2,104 $ — $ 2,503 Investor CRE 1,306 91 546 1,943 — 1,131 Construction 331 — 913 1,244 — 913 Commercial business loans 5,455 1,582 2,803 9,840 1,387 2,481 Residential real estate 11,214 5,216 9,448 25,878 2,004 16,214 Home equity 1,498 779 4,349 6,626 — 6,192 Other consumer 1,123 359 1,393 2,875 154 1,243 Total $ 22,672 $ 8,034 $ 19,804 $ 50,510 $ 3,545 $ 30,677 Loans reported as past due 90 days or more and still accruing represent loans that were evaluated by management and maintained on accrual status based on an evaluation of the borrower. The following is a summary of impaired loans with and without a valuation allowance as of March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 Recorded Unpaid Related Recorded Unpaid Related (In thousands) Impaired loans without a valuation allowance: Owner-occupied CRE $ 2,402 $ 2,790 $ 3,034 $ 3,422 Investor CRE 6,491 6,760 6,895 7,153 Construction 698 1,270 333 1,339 Commercial business loans 8,806 11,180 5,105 7,325 Residential real estate 18,419 20,275 18,244 20,153 Home equity 7,707 9,319 8,132 9,483 Other consumer 721 722 725 725 Total 45,244 52,316 42,468 49,600 Impaired loans with a valuation allowance: Construction 171 171 $ 34 714 965 $ 92 Commercial business loans — — — 114 122 114 Residential real estate 2,164 2,246 72 1,870 2,069 120 Home equity 295 376 31 125 130 1 Other consumer 593 593 236 593 593 243 Total 3,223 3,386 373 3,416 3,879 570 Total impaired loans $ 48,467 $ 55,702 $ 373 $ 45,884 $ 53,479 $ 570 The following is a summary of average recorded investment in impaired loans and interest income recognized on those loans for the periods indicated: For the Three Months For the Three Months Average Interest Average Interest Owner-occupied CRE $ 2,718 $ 24 $ 2,624 $ 32 Investor CRE 6,693 76 8,859 109 Construction 958 1 1,874 10 Commercial business loans 7,013 39 5,194 52 Residential real estate 20,349 245 19,251 207 Home equity 8,130 31 8,427 78 Other consumer 1,316 1 390 — $ 47,177 $ 417 $ 46,619 $ 488 Troubled Debt Restructurings The restructuring of a loan is considered a troubled debt restructuring (“TDR”) if both (i) the restructuring constitutes a concession by the creditor and (ii) the debtor is experiencing financial difficulties. A TDR may include (i) a transfer from the debtor to the creditor of receivables from third parties, real estate, or other assets to satisfy fully or partially a debt, (ii) issuance or other granting of an equity interest to the creditor by the debtor to satisfy fully or partially a debt unless the equity interest is granted pursuant to existing terms for converting debt into an equity interest, and (iii) modifications of terms of a debt. The following table provides detail of TDR balances for the periods presented: At March 31, At December 31, (In thousands) Recorded investment in TDRs: Accrual status $ 19,267 $ 15,208 Non-accrual status 5,479 6,971 Total recorded investment in TDRs $ 24,746 $ 22,179 Accruing TDRs performing under modified terms more than one year $ 12,792 $ 12,609 Specific reserves for TDRs included in the balance of allowance for loan losses $ 103 $ 213 Additional funds committed to borrowers in TDR status $ — $ 7 Loans restructured as TDRs during the three months ended March 31, 2019 and 2018 are set forth in the following table: Three Months Ended Number Pre-Modification Post-Modification (Dollars in thousands) March 31, 2019 Commercial business 5 $ 3,512 $ 3,512 Residential real estate 1 429 429 Total TDRs 6 $ 3,941 $ 3,941 March 31, 2018 Construction 1 $ 965 $ 965 Residential real estate 4 2,861 2,861 Home equity 4 320 320 Total TDRs 9 $ 4,146 $ 4,146 The following table provides information on loan balances modified as TDRs during the period: Three Months Ended March 31, 2019 2018 Extended Adjusted Rate and Extended Maturity Payment Deferral Other Extended Adjusted Rate and Extended Maturity Payment Deferral Other (In thousands) Construction $ — $ — $ — $ — $ 965 $ — $ — $ — Commercial business — — — 3,512 — — — — Residential real estate 429 — — — — — 2,861 — Home equity — — — — 61 259 — — $ 429 $ — $ — $ 3,512 $ 1,026 $ 259 $ 2,861 $ — The following table provides information on loans modified as TDRs within the previous 12 months and for which there was a payment default during the periods presented: March 31, 2019 March 31, 2018 Number of Recorded Number of Recorded (In thousands) Residential real estate — $ — 1 $ 179 Home equity 1 25 2 261 Total 1 $ 25 3 $ 440 The majority of restructured loans were on accrual status as of March 31, 2019 and December 31, 2018 . Typically, residential loans are restructured with a modification and extension of the loan amortization and maturity at substantially the same interest rate as contained in the original credit extension. As part of the TDR process, the current value of the property is compared to the Company’s carrying value and if not fully supported, a charge-off is processed through the allowance for loan losses. Commercial real estate loans, commercial construction loans and commercial business loans also contain payment modification agreements and a like assessment of the underlying collateral value if the borrower’s cash flow may be inadequate to service the entire obligation. Loan Servicing The Company services certain loans for third parties. The aggregate balance of loans serviced for others was $1.53 billion and $1.47 billion as of March 31, 2019 and December 31, 2018 , respectively. The balances of these loans are not included on the accompanying Consolidated Statements of Condition. During the three months ended March 31, 2019 , the Company received servicing income of $ 793,000 , compared to $ 720,000 for the same period in 2018. This income is included in income from mortgage banking activities in the Consolidated Statements of Net Income. The risks inherent in mortgage servicing rights relate primarily to changes in prepayments that result from shifts in mortgage interest rates. The fair value of mortgage servicing rights at both March 31, 2019 and December 31, 2018 was determined using pretax internal rates of return ranging from 11.8% to 13.8% and the Public Securities Association Standard Prepayment model to estimate prepayments on the portfolio with an average prepayment speed of 201 and 150 , respectively. The fair value of mortgage servicing rights is obtained from a third party provider. Mortgage servicing rights are included in other assets on the Consolidated Statements of Condition. Changes in the fair value of mortgage servicing rights are included in income from mortgage banking activities in the Consolidated Statements of Net Income. The following table summarizes mortgage servicing rights activity for the three months ended March 31, 2019 and 2018 . For the Three Months 2019 2018 (In thousands) Mortgage servicing rights: Balance at beginning of period $ 14,739 $ 11,733 Change in fair value recognized in net income (947 ) 819 Issuances 899 781 Fair value of mortgage servicing rights at end of period $ 14,691 $ 13,333 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 5. Leases Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) , as amended, which requires most leases to be capitalized on the balance sheet as a right-of-use asset and lease liability. The new leases standard represents a wholesale change to lease accounting and is intended to provide a more faithful representation of a company’s assets and liabilities and deliver greater transparency about the company’s obligations and leasing activities. The Company elected to transition to the new standard under the amended transition approach in which an entity is permitted to apply the new leases standard at the adoption date (January 1, 2019). As such, prior periods reflect lease accounting under Topic 840. The Company’s prior period on-balance sheet reporting under Topic 840 included capital leases and accrued rent liabilities for operating leases. Capitalized lease assets, under Topic 840, were included in premises and equipment, while capitalized lease obligations were included in other borrowings and accrued rent liabilities were reported in accrued expenses and other liabilities on the Consolidated Statements of Condition. Upon transition to Topic 842, these items were reclassified and are now included as part of the respective right-of-use asset and lease liability, along with the additional assets and liabilities reported on-balance sheet under the new guidance. Transition to the new standard did not result in a cumulative-effect adjustment as the net impact to the Company’s assets was equal to the net impact to liabilities. The Company adopted the package of practical expedients as provided under the transition guidance within the new standard, which allows an entity to not reassess the following: (a) whether any expired or existing contracts are or contain a lease, (b) lease classification for any expired or existing leases, (c) initial direct costs for any expired or existing leases. Upon adoption of this ASU, the Company recorded an increase in assets of $46.5 million and an increase in liabilities of $46.5 million on the Consolidated Statements of Condition as a result of recognizing right-of-use assets and lease liabilities. At March 31, 2019, the Company had 70 operating leases comprised of branches, administrative offices, ATMs, and copiers, as well as three finance leases for branch locations. Our leases have remaining lease terms of one to twenty years with renewal options of five to thirty years . Renewal options are recognized as part of the right-of-use asset and lease liability in cases where the option has been exercised or the Company is reasonably certain to exercise an option to renew based on relevant factors that create an economic incentive to exercise. The Company subleases four properties, as sublessor, with sublease terms that closely adhere to the related prime lease agreement. The sublease agreements are each classified as operating leases. Additionally, the Company, as lessor, leases two owned properties, classified as operating leases, with the remaining lease terms of approximately two years and nine years , each with options to extend up to ten additional years. The Company applied the package of expedients in determining whether a contract is or contains a lease and classification of the lease. Certain lease agreements, with the Company as lessee or lessor, include rental payments based on a percentage increase in the consumer price index (“CPI”). Future incremental changes in CPI, as applicable, are reflected in the Consolidated Statements of Net Income when incurred. The Company’s lease agreements do not contain residual value guarantees or restrictive covenants. As most of the Company’s lease agreements do not provide an implicit rate, the Company used the incremental borrowing rate that the Company would have to pay to borrow on a collateralized basis over a similar term to the remaining lease payments period for each lease agreement. The components of lease expense were as follows: Three Months Ended March 31, 2019 (In thousands) Operating lease cost $ 1,672 Finance lease cost: Amortization of right-of-use assets 89 Interest on lease liabilities 63 Sublease income (223 ) Lease income (98 ) Total lease cost $ 1,503 Other information related to leases as of March 31, 2019 is as follows: March 31, Weighted Average Remaining Lease Term (in years): Operating Leases 12.00 Finance Leases 13.00 Weighted Average Discount Rate: Operating Leases 3.53 % Finance Leases 5.44 % Maturities of lease liabilities as of March 31, 2019 are as follows: Operating Leases Finance Leases (In thousands) 2019 (remaining nine months) $ 5,088 $ 386 2020 7,189 515 2021 7,021 515 2022 6,555 515 2023 5,447 515 Thereafter 38,252 3,929 Total lease payments 69,552 6,375 Less: imputed interest (13,287 ) (1,790 ) Total $ 56,265 $ 4,585 Maturities of rents receivable as of March 31, 2019 are as follows: Operating Leases (In thousands) 2019 (remaining nine months) $ 1,019 2020 1,391 2021 1,266 2022 841 2023 144 Thereafter 297 Total lease payments received $ 4,958 |
Leases | Note 5. Leases Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) , as amended, which requires most leases to be capitalized on the balance sheet as a right-of-use asset and lease liability. The new leases standard represents a wholesale change to lease accounting and is intended to provide a more faithful representation of a company’s assets and liabilities and deliver greater transparency about the company’s obligations and leasing activities. The Company elected to transition to the new standard under the amended transition approach in which an entity is permitted to apply the new leases standard at the adoption date (January 1, 2019). As such, prior periods reflect lease accounting under Topic 840. The Company’s prior period on-balance sheet reporting under Topic 840 included capital leases and accrued rent liabilities for operating leases. Capitalized lease assets, under Topic 840, were included in premises and equipment, while capitalized lease obligations were included in other borrowings and accrued rent liabilities were reported in accrued expenses and other liabilities on the Consolidated Statements of Condition. Upon transition to Topic 842, these items were reclassified and are now included as part of the respective right-of-use asset and lease liability, along with the additional assets and liabilities reported on-balance sheet under the new guidance. Transition to the new standard did not result in a cumulative-effect adjustment as the net impact to the Company’s assets was equal to the net impact to liabilities. The Company adopted the package of practical expedients as provided under the transition guidance within the new standard, which allows an entity to not reassess the following: (a) whether any expired or existing contracts are or contain a lease, (b) lease classification for any expired or existing leases, (c) initial direct costs for any expired or existing leases. Upon adoption of this ASU, the Company recorded an increase in assets of $46.5 million and an increase in liabilities of $46.5 million on the Consolidated Statements of Condition as a result of recognizing right-of-use assets and lease liabilities. At March 31, 2019, the Company had 70 operating leases comprised of branches, administrative offices, ATMs, and copiers, as well as three finance leases for branch locations. Our leases have remaining lease terms of one to twenty years with renewal options of five to thirty years . Renewal options are recognized as part of the right-of-use asset and lease liability in cases where the option has been exercised or the Company is reasonably certain to exercise an option to renew based on relevant factors that create an economic incentive to exercise. The Company subleases four properties, as sublessor, with sublease terms that closely adhere to the related prime lease agreement. The sublease agreements are each classified as operating leases. Additionally, the Company, as lessor, leases two owned properties, classified as operating leases, with the remaining lease terms of approximately two years and nine years , each with options to extend up to ten additional years. The Company applied the package of expedients in determining whether a contract is or contains a lease and classification of the lease. Certain lease agreements, with the Company as lessee or lessor, include rental payments based on a percentage increase in the consumer price index (“CPI”). Future incremental changes in CPI, as applicable, are reflected in the Consolidated Statements of Net Income when incurred. The Company’s lease agreements do not contain residual value guarantees or restrictive covenants. As most of the Company’s lease agreements do not provide an implicit rate, the Company used the incremental borrowing rate that the Company would have to pay to borrow on a collateralized basis over a similar term to the remaining lease payments period for each lease agreement. The components of lease expense were as follows: Three Months Ended March 31, 2019 (In thousands) Operating lease cost $ 1,672 Finance lease cost: Amortization of right-of-use assets 89 Interest on lease liabilities 63 Sublease income (223 ) Lease income (98 ) Total lease cost $ 1,503 Other information related to leases as of March 31, 2019 is as follows: March 31, Weighted Average Remaining Lease Term (in years): Operating Leases 12.00 Finance Leases 13.00 Weighted Average Discount Rate: Operating Leases 3.53 % Finance Leases 5.44 % Maturities of lease liabilities as of March 31, 2019 are as follows: Operating Leases Finance Leases (In thousands) 2019 (remaining nine months) $ 5,088 $ 386 2020 7,189 515 2021 7,021 515 2022 6,555 515 2023 5,447 515 Thereafter 38,252 3,929 Total lease payments 69,552 6,375 Less: imputed interest (13,287 ) (1,790 ) Total $ 56,265 $ 4,585 Maturities of rents receivable as of March 31, 2019 are as follows: Operating Leases (In thousands) 2019 (remaining nine months) $ 1,019 2020 1,391 2021 1,266 2022 841 2023 144 Thereafter 297 Total lease payments received $ 4,958 |
Leases | Note 5. Leases Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) , as amended, which requires most leases to be capitalized on the balance sheet as a right-of-use asset and lease liability. The new leases standard represents a wholesale change to lease accounting and is intended to provide a more faithful representation of a company’s assets and liabilities and deliver greater transparency about the company’s obligations and leasing activities. The Company elected to transition to the new standard under the amended transition approach in which an entity is permitted to apply the new leases standard at the adoption date (January 1, 2019). As such, prior periods reflect lease accounting under Topic 840. The Company’s prior period on-balance sheet reporting under Topic 840 included capital leases and accrued rent liabilities for operating leases. Capitalized lease assets, under Topic 840, were included in premises and equipment, while capitalized lease obligations were included in other borrowings and accrued rent liabilities were reported in accrued expenses and other liabilities on the Consolidated Statements of Condition. Upon transition to Topic 842, these items were reclassified and are now included as part of the respective right-of-use asset and lease liability, along with the additional assets and liabilities reported on-balance sheet under the new guidance. Transition to the new standard did not result in a cumulative-effect adjustment as the net impact to the Company’s assets was equal to the net impact to liabilities. The Company adopted the package of practical expedients as provided under the transition guidance within the new standard, which allows an entity to not reassess the following: (a) whether any expired or existing contracts are or contain a lease, (b) lease classification for any expired or existing leases, (c) initial direct costs for any expired or existing leases. Upon adoption of this ASU, the Company recorded an increase in assets of $46.5 million and an increase in liabilities of $46.5 million on the Consolidated Statements of Condition as a result of recognizing right-of-use assets and lease liabilities. At March 31, 2019, the Company had 70 operating leases comprised of branches, administrative offices, ATMs, and copiers, as well as three finance leases for branch locations. Our leases have remaining lease terms of one to twenty years with renewal options of five to thirty years . Renewal options are recognized as part of the right-of-use asset and lease liability in cases where the option has been exercised or the Company is reasonably certain to exercise an option to renew based on relevant factors that create an economic incentive to exercise. The Company subleases four properties, as sublessor, with sublease terms that closely adhere to the related prime lease agreement. The sublease agreements are each classified as operating leases. Additionally, the Company, as lessor, leases two owned properties, classified as operating leases, with the remaining lease terms of approximately two years and nine years , each with options to extend up to ten additional years. The Company applied the package of expedients in determining whether a contract is or contains a lease and classification of the lease. Certain lease agreements, with the Company as lessee or lessor, include rental payments based on a percentage increase in the consumer price index (“CPI”). Future incremental changes in CPI, as applicable, are reflected in the Consolidated Statements of Net Income when incurred. The Company’s lease agreements do not contain residual value guarantees or restrictive covenants. As most of the Company’s lease agreements do not provide an implicit rate, the Company used the incremental borrowing rate that the Company would have to pay to borrow on a collateralized basis over a similar term to the remaining lease payments period for each lease agreement. The components of lease expense were as follows: Three Months Ended March 31, 2019 (In thousands) Operating lease cost $ 1,672 Finance lease cost: Amortization of right-of-use assets 89 Interest on lease liabilities 63 Sublease income (223 ) Lease income (98 ) Total lease cost $ 1,503 Other information related to leases as of March 31, 2019 is as follows: March 31, Weighted Average Remaining Lease Term (in years): Operating Leases 12.00 Finance Leases 13.00 Weighted Average Discount Rate: Operating Leases 3.53 % Finance Leases 5.44 % Maturities of lease liabilities as of March 31, 2019 are as follows: Operating Leases Finance Leases (In thousands) 2019 (remaining nine months) $ 5,088 $ 386 2020 7,189 515 2021 7,021 515 2022 6,555 515 2023 5,447 515 Thereafter 38,252 3,929 Total lease payments 69,552 6,375 Less: imputed interest (13,287 ) (1,790 ) Total $ 56,265 $ 4,585 Maturities of rents receivable as of March 31, 2019 are as follows: Operating Leases (In thousands) 2019 (remaining nine months) $ 1,019 2020 1,391 2021 1,266 2022 841 2023 144 Thereafter 297 Total lease payments received $ 4,958 |
Goodwill and Core Deposit Intan
Goodwill and Core Deposit Intangibles | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Core Deposit Intangibles | Note 6. Goodwill and Core Deposit Intangibles The carrying value of goodwill was $116.7 million and $116.8 million at March 31, 2019 and December 31, 2018 , respectively. The changes in the carrying amount of core deposit intangible assets are summarized as follows: Core Deposit Intangibles (In thousands) Balance at December 31, 2017 $ 4,491 Amortization expense (1,350 ) Acquisitions 2,886 Balance at December 31, 2018 $ 6,027 Amortization expense (420 ) Balance at March 31, 2019 $ 5,607 Estimated amortization expense for the years ending December 31, 2019 (remaining nine months) $ 1,118 2020 1,293 2021 1,048 2022 803 2023 559 2024 and thereafter 786 Total remaining $ 5,607 In accordance with ASC 350, Intangibles – Goodwill and Other , goodwill is not amortized, but will be subject to an annual review of qualitative factors to determine if an impairment test is required. The core deposit intangible is being amortized using the sum of the years’ digits method over its estimated life of 10 years. Amortization expense of the core deposit intangible was $420,000 and $337,000 for the three months ended March 31, 2019 and 2018 , respectively. On October 5, 2018, the Company acquired six branches which were accounted for under FASB ASC 805, Business Combinations . In addition to the acquired branches, the Company assumed $109.4 million of branch deposits and $2.3 million of fixed assets. The purchase price of $6.9 million was allocated based on the estimated fair market values of the assets and liabilities acquired. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Borrowings | Note 7. Borrowings Federal Home Loan Bank of Boston Advances The Company is a member of the Federal Home Loan Bank of Boston (“FHLBB”). Contractual maturities and weighted-average rates of outstanding advances from the FHLBB as of March 31, 2019 and December 31, 2018 are summarized below: March 31, 2019 December 31, 2018 Amount Weighted- Amount Weighted- (Dollars in thousands) 2019 $ 685,000 2.69 % $ 785,000 2.55 % 2020 33,000 2.61 8,000 2.33 2021 15,000 2.80 — — 2022 — — — — 2023 2,431 2.51 2,557 2.51 Thereafter 1,512 2.58 1,531 2.58 $ 736,943 2.68 % $ 797,088 2.54 % The total carrying value of FHLBB advances at March 31, 2019 was $737.1 million , which includes a remaining fair value adjustment of $172,000 on acquired advances. At December 31, 2018 , the total carrying value of FHLBB advances was $797.3 million , with a remaining fair value adjustment of $183,000 . At March 31, 2019 , the Company had no outstanding advances that are callable by the FHLBB. All advances are collateralized by first and second mortgage loans, as well as investment securities with an estimated eligible collateral value of $2.25 billion and $2.37 billion at March 31, 2019 and December 31, 2018 , respectively. In addition to the outstanding advances, the Company has access to an unused line of credit with the FHLBB amounting to $10.0 million at March 31, 2019 and December 31, 2018 . In accordance with an agreement with the FHLBB, the qualified collateral must be free and clear of liens, pledges and have a discounted value equal to the aggregate amount of the line of credit and outstanding advances. At March 31, 2019 , the Company could borrow immediately an additional $590.5 million from the FHLBB, inclusive of the line of credit. Other Borrowings The following table presents other borrowings by category as of the dates indicated: March 31, 2019 December 31, 2018 (In thousands) Subordinated debentures $ 80,261 $ 80,201 Wholesale repurchase agreements — 10,000 Customer repurchase agreements 9,292 8,361 Other — 3,793 Total other borrowings $ 89,553 $ 102,355 Subordinated Debentures On September 23, 2014, the Company closed its public offering of $75.0 million of its 5.75% Subordinated Notes due October 1, 2024 (the “Notes”). The Notes were offered to the public at par. Interest on the Notes is payable semi-annually in arrears on April 1 and October 1 of each year, commencing on April 1, 2015. Issuance costs totaled $1.3 million and are being amortized over the life of the Notes as a component of interest expense. The carrying value, net of issuance costs, totaled $74.3 million at both March 31, 2019 and December 31, 2018. The Company assumed junior subordinated debt in the form of trust preferred securities issued through a private placement offering with a face amount of $7.7 million in a merger in 2014. The Company recorded a fair value acquisition discount of $2.3 million on May 1, 2014. The remaining unamortized discount was $1.8 million at both March 31, 2019 and December 31, 2018 . This issue has a maturity date of March 15, 2036 and bears a floating rate of interest that reprices quarterly at the 3-month LIBOR rate plus 1.85% . A special redemption provision allows the Company to redeem this issue at par on March 15, June 15, September 15, or December 15 of any year subsequent to March 15, 2011. Repurchase Agreements The following table presents the Company’s outstanding borrowings under repurchase agreements as of March 31, 2019 and December 31, 2018 : Remaining Contractual Maturity of the Agreements Overnight Up to 1 Year 1 - 3 Years Greater than 3 Years Total (In thousands) March 31, 2019 Repurchase Agreements U.S. Agency Securities $ 9,292 $ — $ — $ — $ 9,292 December 31, 2018 Repurchase Agreements U.S. Treasury and agency Securities $ 8,361 $ 10,000 $ — $ — $ 18,361 At March 31, 2019, the Company had no advances outstanding under wholesale reverse repurchase agreements. At December 31, 2018, advances outstanding under wholesale reverse repurchase agreements totaled $10.0 million , and consisted of one individual borrowing with a remaining term of one year or less and had a weighted average cost of 2.44% . The Company pledged investment securities with a market value of $12.5 million as collateral for these borrowings at December 31, 2018 . Retail repurchase agreements, primarily consisting of transactions with commercial and municipal customers, are for a term of one day and are backed by the purchasers’ interest in certain U.S. Government Agency securities or government-sponsored securities. As of March 31, 2019 and December 31, 2018 , retail repurchase agreements totaled $9.3 million and $8.4 million , respectively. The Company pledged investment securities with a market value of $24.3 million and $25.4 million as collateral for these borrowings at March 31, 2019 and December 31, 2018 , respectively. Given that the repurchase agreements are secured by investment securities valued at market value, the collateral position is susceptible to change based upon variation in the market value of the securities that can arise due to fluctuations in interest rates, among other things. In the event that the interest rate changes result in a decrease in the value of the pledged securities, additional securities will be required to be pledged in order to secure the borrowings. Due to the short term nature of the majority of the repurchase agreements, Management believes the risk of further encumbered securities pose a minimal impact to the Company’s liquidity position. Other At December 31, 2018 , other borrowings totaled $3.8 million and consisted of capital lease obligations for three of the Company’s leased banking branches acquired during a merger. Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) . Upon adoption, these capital lease obligations were reclassified from other borrowings to finance lease liabilities on the Consolidated Statements of Condition, and totaled $4.6 million at March 31, 2019 . See Note 5, “Leases” in the Notes to Consolidated Financial Statements for further information. Other Sources of Wholesale Funding The Company has relationships with brokered sweep deposit providers by which funds are deposited by the counterparties at the Company’s request. Amounts outstanding under these agreements are reported as interest-bearing deposits and totaled $388.2 million at a cost of 2.59% at March 31, 2019 and $432.5 million at a cost of 2.44% at December 31, 2018 . The Company maintains open dialogue with the brokered sweep providers and has the ability to increase the deposit balances upon request, up to certain limits based upon internal policy requirements. Additionally, the Company has unused federal funds lines of credit with four counterparties totaling $140.0 million at both March 31, 2019 and December 31, 2018 . |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 8. Derivatives and Hedging Activities Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposure to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. The Company also has interest rate derivatives that result from a service provided to certain qualifying customers. The Company manages a matched book with respect to these derivative instruments in order to minimize its net risk exposure resulting from such transactions. Information about interest rate swap agreements and non-hedging derivative assets and liabilities as of March 31, 2019 and December 31, 2018 is as follows: Notional Amount Weighted-Average Remaining Maturity Weighted-Average Rate Estimated Fair Value, Net Asset (Liability) Received Paid (In thousands) (In years) (In thousands) March 31, 2019 Cash flow hedges: Interest rate swaps $ 445,000 3.91 2.69 % 2.53 % $ (4,695 ) Non-hedging derivatives: Forward loan sale commitments 31,127 0.00 1 Derivative loan commitments 14,734 0.00 209 Interest rate swap 7,500 7.29 (517 ) Loan level swaps - dealer(1) 633,700 6.51 4.30 % 4.12 % (7,807 ) Loan level swaps - borrowers(1) 633,700 6.51 4.12 % 4.30 % 7,800 Forward starting loan level swaps - dealer(1) 8,000 8.45 TBD (2) 5.11 % (198 ) Forward starting loan level swaps - borrower(1) 8,000 8.45 5.11 % TBD (2) 197 Total $ 1,781,761 $ (5,010 ) December 31, 2018 Cash flow hedges: Forward starting interest rate swaps on future borrowings $ 50,000 5.22 TBD (3) 2.67 % $ (356 ) Interest rate swaps 395,000 4.02 2.59 % 2.51 % 457 Non-hedging derivatives: Forward loan sale commitments 85,043 0.00 (681 ) Derivative loan commitments 8,491 0.00 194 Interest rate swap 7,500 7.54 (686 ) Loan level swaps - dealer(1) 640,760 6.88 4.20 % 4.10 % 2,068 Loan level swaps - borrowers(1) 640,760 6.88 4.10 % 4.20 % (2,074 ) Forward starting loan level swaps - dealer(1) 8,000 8.70 TBD (2) 5.11 % (37 ) Forward starting loan level swaps - borrower(1) 8,000 8.70 5.11 % TBD (2) 37 Total $ 1,843,554 $ (1,078 ) (1) The Company offers a loan level hedging product to qualifying commercial borrowers that seek to mitigate risk to rising interest rates. As such, the Company enters into equal and offsetting trades with dealer counterparties. (2) The floating leg of the forward starting loan level hedge is indexed to the one month USD-LIBOR-BBA, as determined one London banking day prior to the tenth day of each calendar month, commencing with the effective trade date on September 10, 2020 . (3) The receiver leg of the cash flow hedge is floating rate and indexed to the 3-month USD-LIBOR-BBA, as determined two London banking days prior to the first day of each calendar quarter, commencing with the earliest effective trade. The earliest effective trade date for this forward starting cash flow hedge was March 20, 2019 for the period ended December 31, 2018. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company expects to reclassify $129,000 from accumulated other comprehensive loss to interest expense during the next 12 months. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a period of approximately 60 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). As of March 31, 2019 , the Company had 11 outstanding interest rate derivatives with a notional value of $445.0 million that were designated as cash flow hedges of interest rate risk. Fair Value Hedges of Interest Rate Risk The Company is exposed to changes in the fair value of certain of its fixed rate obligations due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the benchmark interest rate. Interest rate swaps designated as fair value hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting gain or loss on the related derivatives. For the three months ended March 31, 2019, there was no net impact to interest expense, and for the three months ended March 31, 2018, the Company recognized a negligible net impact to interest expense. As of March 31, 2019 , the Company had no outstanding interest rate derivatives that were designated as a fair value hedge of interest rate risk. Non-Designated Hedges Loan Level Interest Rate Swaps Qualifying derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate derivatives with commercial banking customers to facilitate their respective risk management strategies. Those interest rate derivatives are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. As of March 31, 2019 , the Company had 86 borrower-facing interest rate derivatives with an aggregate notional amount of $633.7 million and 86 broker derivatives with an aggregate notional value amount of $633.7 million related to this program. As of March 31, 2019 , the Company had nine risk participation agreements with four counterparties related to a loan level interest rate swap with eight of its commercial banking customers. Of these agreements, three were entered into in conjunction with credit enhancements provided to the borrowers by the counterparties; therefore, if the borrowers default, the counterparties are responsible for a percentage of the exposure. Six agreements were entered into in conjunction with credit enhancements provided to the borrower by the Company, whereby the Company is responsible for a percentage of the exposure to the counterparty. At March 31, 2019 , the notional amount of these risk participation agreements was $41.1 million , reflecting the counterparty participation of 31.9% . At March 31, 2019 , the notional amount of the remaining three risk participation agreements was $24.1 million , reflecting the counterparty participation level of 36.7% . The risk participation agreements are a guarantee of performance on a derivative and accordingly, are recorded at fair value on the Company’s Consolidated Statements of Condition. The fair value of the risk participation agreements in an asset and liability position was negligible at March 31, 2019, and is recorded in other assets and other liabilities, respectively, on the Company’s Consolidated Statements of Condition. Forward Starting Loan Level Swaps As of March 31, 2019 , the Company had one borrower-facing forward starting loan level swap with a notional amount of $8.0 million , and one broker derivative with a notional amount of $8.0 million related to this program. These swaps are related to the permanent financing of projects that are currently in the construction phase. Mortgage Servicing Rights Interest Rate Swap As of March 31, 2019 , the Company had one receive-fixed interest rate derivative with a notional amount of $7.5 million and a maturity date in July 2026. The derivative was executed to protect against a portion of the devaluation of the Company’s mortgage servicing right asset that occurs in a falling rate environment. The instrument is marked to market through the Company’s Consolidated Statements of Net Income. Derivative Loan Commitments Additionally, the Company enters into mortgage loan commitments that are also referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market. Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. Forward Loan Sale Commitments To protect against the price risk inherent in derivative loan commitments, the Company utilizes To Be Announced (“TBA”) as well as cash (“mandatory delivery” and “best efforts”) forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. With TBA and mandatory cash contracts, the Company commits to deliver a certain principal amount of mortgage loans to an investor/counterparty at a specified price on or before a specified date. If the market improves (rate decline) and the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor/counterparty to compensate the investor for the shortfall. Conversely, if the market declines (rates worsen) the investor/counterparty is obligated to pay a “pair-off” fee to the Company based on then-current market prices. The Company expects that these forward loan sale commitments, TBA and mandatory, will experience changes in fair value opposite to the change in fair value of derivative loan commitments. With best effort cash contracts, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally best efforts cash contracts have no pair-off risk regardless of market movement. The price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these forward loan sale commitments, best efforts, will experience a net neutral shift in fair value of derivative loan commitments. Fair Values of Derivative Instruments on the Statement of Condition The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Condition as of March 31, 2019 and December 31, 2018 : Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location Mar 31, 2019 Dec 31, 2018 Balance Sheet Location Mar 31, 2019 Dec 31, 2018 (In thousands) Derivatives designated as hedging instruments: Interest rate swap - cash flow hedge Other Assets $ 145 $ 1,610 Other Liabilities $ 4,840 $ 1,509 Total derivatives designated as hedging instruments $ 145 $ 1,610 $ 4,840 $ 1,509 Derivatives not designated as hedging instruments: Forward loan sale commitments Other Assets $ 1 $ — Other Liabilities $ — $ 681 Derivative loan commitments Other Assets 209 194 Other Liabilities — — Interest rate swap Other Assets — — Other Liabilities 517 686 Interest rate swap - with customers Other Assets 10,880 4,805 Other Liabilities 3,080 6,879 Interest rate swap - with counterparties Other Assets 3,080 6,877 Other Liabilities 10,887 4,809 Forward starting loan level swap Other Assets 197 37 Other Liabilities 198 37 Total derivatives not designated as hedging $ 14,367 $ 11,913 $ 14,682 $ 13,092 Effect of Derivative Instruments in the Company’s Consolidated Statements of Net Income and Changes in Stockholders’ Equity The tables below presents the effect of derivative instruments in the Company’s Statements of Changes in Stockholders’ Equity designated as hedging instruments for the three months ended March 31, 2019 and 2018 : Cash Flow Hedges Amount of Gain (Loss) Recognized in AOCI (Effective Portion) Derivatives Designated as Cash Flow Hedging Instruments Three Months Ended March 31, 2019 2018 (In thousands) Interest rate swaps $ (4,573 ) $ 4,432 Amount of (Gains) Losses Reclassified from AOCI into Expense (Effective Portion) Derivatives Designated as Cash Flow Hedging Instruments Three Months Ended March 31, 2019 2018 (In thousands) Interest rate swaps $ (223 ) $ 345 The tables below present information pertaining to the Company’s derivatives in the Consolidated Statements of Net Income designated as hedging instruments for the three months ended March 31, 2019 and 2018 : Fair Value Hedges Amount of Gain Recognized in Income from Derivatives Derivatives Designated as Fair Value Location of Gain (Loss) Recognized in Income Three Months Ended March 31, 2019 2018 (In thousands) Interest rate swaps Interest income $ — $ 8 Amount of Gain Recognized in Income from Hedged Items Three Months Ended March 31, 2019 2018 (In thousands) Interest rate swaps Interest income $ — $ 9 The table below presents information pertaining to the Company’s derivatives not designated as hedging instruments in the Consolidated Statements of Net Income as of March 31, 2019 and 2018 : Amount of Gain (Loss) Recognized in Income Three Months Ended March 31, 2019 2018 (In thousands) Derivatives not designated as hedging instruments: Derivative loan commitments $ 15 $ (26 ) Interest rate swap 169 (194 ) Forward loan sale commitments 682 (5 ) Loan level swaps (1 ) 5 Forward starting loan level swaps (1 ) — $ 864 $ (220 ) Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where if the counterparty defaults on any of its indebtedness or fails to maintain a well-capitalized rating, then the Company could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty. As of March 31, 2019 , the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $13.0 million . As of March 31, 2019 , the Company has minimum collateral posting thresholds with certain of its derivative counterparties and had $16.4 million of securities pledged as collateral under these agreements. A degree of netting occurs on occasions where the Company has exposure to a counterparty and the counterparty has exposure to the Company. If the Company had breached any of these provisions at March 31, 2019 , it could have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Note 9. Stock-Based Compensation Plans The Company maintains and operates several stock incentive award plans to attract, retain and reward performance of qualified employees and directors who contribute to the success of the Company. These plans include those assumed by the Company in 2014 as a result of merger activity. Current active plans are: • Rockville Financial, Inc. 2006 Stock Incentive Award Plan (the “2006 Plan”); • Rockville Financial, Inc. 2012 Stock Incentive Plan (the “2012 Plan”); • United Financial Bancorp, Inc. 2008 Equity Incentive Plan; and • 2015 Omnibus Stock Incentive Plan (the “2015 Plan”). The 2015 Plan became effective on October 29, 2015 upon approval by the Company’s shareholders. As of the effective date of the 2015 Plan, no other awards may be granted from the previously approved or assumed plans. The 2015 Plan allows the Company to use stock options, stock awards, and performance awards to attract, retain and reward performance of qualified employees and directors who contribute to the success of the Company. The 2015 Plan reserves a total of up to 4,050,000 shares (the “Cap”) of Company common stock for issuance upon the grant or exercise of awards made pursuant to the 2015 Plan. Of these shares, the Company may grant shares in the form of restricted stock, performance shares and other share-based awards and may grant stock options. However, the number of shares issuable will be adjusted by a “fungible ratio” of 2.35 . This means that for each share award other than a stock option share or a stock appreciation right share, each 1 share awarded shall be deemed to be 2.35 shares awarded. As of March 31, 2019 , there were 2,124,251 shares available for future grants under the 2015 Plan. For the three months ended March 31, 2019 , total employee and director stock-based compensation expense recognized for stock options and restricted stock was $4,000 with a related tax benefit of $1,000 and $576,000 with a related tax benefit of $127,000 , respectively. Of the total expense amount for the three -month period, the amount for director stock-based compensation expense recognized (in the Consolidated Statements of Net Income as other non-interest expense) was $59,000 , and the amount for officer stock-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and employee benefit expense) was $521,000 . For the three months ended March 31, 2018 , total employee and director stock-based compensation expense recognized for stock options and restricted stock was $5,000 with a related tax benefit of $1,000 and $713,000 with a related tax benefit of $157,000 , respectively. The fair values of stock option and restricted stock awards, measured at grant date, are amortized to compensation expense on a straight-line basis over the vesting period. Stock Options The following table presents the activity related to stock options outstanding, including options that have stock appreciation rights (“SARs”), under the Plans for the three months ended March 31, 2019 : Number of Weighted- Weighted-Average Aggregate Outstanding at December 31, 2018 1,386,712 $ 11.70 Granted — — Exercised (51,513 ) 9.09 Forfeited or expired — — Outstanding at March 31, 2019 1,335,199 $ 11.80 3.7 $ 3.4 Stock options vested and exercisable at March 31, 2019 1,326,475 $ 11.79 3.7 $ 3.4 As of March 31, 2019 , the unrecognized cost related to outstanding stock options was $4,000 and will be recognized over a weighted-average period of 0.2 years . There were no stock options granted during the three months ended March 31, 2019 and 2018 . Options exercised may include awards that were originally granted as tandem SARs. Therefore, if the SAR component is exercised, it will not equate to the number of shares issued due to the conversion of the SAR option value to the actual share value at exercise date. There were no options with a SAR component included in total options exercised during the three months ended March 31, 2019 . Restricted Stock Restricted stock provides grantees with rights to shares of common stock upon completion of a service period and in certain cases obtaining a performance metric. During the restriction period, all shares are considered outstanding and dividends are paid on the restricted stock. The Company did not issue any shares of restricted stock from shares available under the Company’s 2015 Plan during the three months ended March 31, 2019 . The following table presents the activity for restricted stock for the three months ended March 31, 2019 : Number Weighted-Average Unvested as of December 31, 2018 474,508 $ 15.44 Granted — — Vested (55,485 ) 11.34 Forfeited (37,292 ) 13.19 Unvested as of March 31, 2019 381,731 $ 16.26 As of March 31, 2019 , there was $4.4 million of total unrecognized compensation cost related to unvested restricted stock, which is expected to be recognized over a weighted-average period of 2.1 years . Employee Stock Ownership Plan As part of the second-step conversion and stock offering completed in 2011, the Employee Stock Ownership Plan (“ESOP”) borrowed an additional $7.1 million from the Company to purchase 684,395 shares of common stock during the initial public offering and in the open market. The outstanding loan balance of $5.9 million at March 31, 2019 will be repaid principally from the Bank’s discretionary contributions to the ESOP over a remaining period of 22 years . The loan bears an interest rate of prime plus one percent . The unallocated ESOP shares are pledged as collateral on the loans. As the loans are repaid to the Company, shares will be released from collateral and will be allocated to the accounts of the participants. For the three months ended March 31, 2019 and 2018 , ESOP compensation expense was $86,000 and $95,000 , respectively. The Company accounts for its ESOP in accordance with FASB ASC 718-40, Compensation – Stock Compensation . Under this guidance, unearned ESOP shares are not considered outstanding and are shown as a reduction of stockholders’ equity as unearned compensation. The Company will recognize compensation cost equal to the fair value of the ESOP shares during the periods in which they are committed to be allocated. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, this difference will be credited or debited to equity. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a liability in the Company’s consolidated financial statements. Dividends on unallocated shares are used to pay the ESOP debt. The ESOP shares as of the period indicated below were as follows: March 31, 2019 Allocated shares 1,243,678 Shares allocated for release 5,703 Unreleased shares 496,187 Total ESOP shares 1,745,568 Market value of unreleased shares (in thousands) $ 7,120 |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Note 10. Regulatory Matters Minimum regulatory capital requirements The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve qualitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Federal banking regulations require a minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0% and a minimum leverage ratio of 4.0% for all banking organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. The capital conservation buffer and certain deductions from and adjustments to regulatory capital and risk-weighted assets were phased in over several years. The required minimum conservation buffer was 1.875% as of December 31, 2018 and increased to 2.5% on January 1, 2019, which was the date marking the end of the phase in period. As of March 31, 2019 , the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework from prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Management believes, as of March 31, 2019 and December 31, 2018 , that the Company and the Bank meet all capital adequacy requirements to which they are subject. The Company’s and the Bank’s actual capital amounts and ratios as of March 31, 2019 and December 31, 2018 are also presented in the following table: Actual Minimum For Minimum To Be Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) United Bank March 31, 2019 Total capital to risk weighted assets $ 689,517 11.70 % $ 471,465 8.00 % $ 589,331 10.00 % Common equity tier 1 capital to risk weighted assets 635,148 10.78 265,136 4.50 382,974 6.50 Tier 1 capital to risk weighted assets 635,148 10.78 353,515 6.00 471,353 8.00 Tier 1 capital to total average assets 635,148 8.77 289,691 4.00 362,114 5.00 December 31, 2018 Total capital to risk weighted assets $ 694,633 11.87 % $ 466,980 8.00 % $ 583,725 10.00 % Common equity tier 1 capital to risk weighted assets 640,773 10.95 264,539 4.50 382,112 6.50 Tier 1 capital to risk weighted assets 640,773 10.95 352,719 6.00 470,292 8.00 Tier 1 capital to total average assets 640,773 8.99 284,788 4.00 355,985 5.00 United Financial Bancorp, Inc. March 31, 2019 Total capital to risk weighted assets $ 739,571 12.52 % $ 472,569 8.00 % N/A N/A Common equity tier 1 capital to risk weighted assets 610,202 10.33 265,819 4.50 N/A N/A Tier 1 capital to risk weighted assets 610,202 10.33 354,425 6.00 N/A N/A Tier 1 capital to total average assets 610,202 8.43 289,538 4.00 N/A N/A December 31, 2018 Total capital to risk weighted assets $ 739,322 12.60 % $ 469,411 8.00 % N/A N/A Common equity tier 1 capital to risk weighted assets 610,462 10.40 264,142 4.50 N/A N/A Tier 1 capital to risk weighted assets 610,462 10.40 352,190 6.00 N/A N/A Tier 1 capital to total average assets 610,462 8.43 290,696 4.00 N/A N/A Our ability to pay dividends to our stockholders is substantially dependent upon the Bank’s ability to pay dividends to the Company. The Federal Reserve guidance sets forth the supervisory expectation that bank holding companies will inform and consult with Federal Reserve staff in advance of issuing a dividend that exceeds earnings for the quarter and should not pay dividends in a rolling four quarter period in an amount that exceeds net income for that period. Federal law also prohibits the Bank from paying dividends that would be greater than its undivided profits after deducting statutory bad debt in excess of its allowance for loan losses. The FDIC may limit a savings bank’s ability to pay dividends. No dividends may be paid to the Company’s shareholders if such dividends would reduce stockholders’ equity below the amount of the liquidation account required by the Connecticut conversion regulations. Connecticut law restricts the amount of dividends that the Bank can pay based on net income included in retained earnings for the current year and the preceding two years. As of March 31, 2019 and December 31, 2018 , $79.9 million and $135.0 million , respectively, was available for the payment of dividends. Connecticut banking laws grant banks broad lending authority. With certain limited exceptions, any one obligor under this statutory authority may not exceed 10% and 15%, respectively, of a bank’s capital and allowance for loan losses. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 11. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: March 31, 2019 December 31, 2018 (In thousands) Benefit plans: Unrecognized net actuarial loss $ (7,720 ) $ (7,861 ) Tax effect 1,701 1,731 Benefit plans, net (6,019 ) (6,130 ) Securities available-for-sale: Net unrealized loss (8,215 ) (31,248 ) Tax effect 1,810 6,885 Securities available-for-sale, net (6,405 ) (24,363 ) Interest rate swaps: Net unrealized (loss) gain (4,695 ) 101 Tax effect 1,034 (22 ) Interest rate swaps, net (3,661 ) 79 $ (16,085 ) $ (30,414 ) On January 1, 2018, the Company adopted ASU No. 2018-02, Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which addressed the impact of the federal tax rate reduction on deferred taxes that were originally recorded through accumulated other comprehensive income. Through the adoption of this ASU, the Company reclassed the “dangling” difference due to the tax rate differential caused by the enactment of the Tax Cuts and Jobs Act on December 22, 2017. As a result, a one-time reclassification of $2.6 million was made from accumulated other comprehensive loss to retained earnings. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 12. Net Income Per Share The following table sets forth the calculation of basic and diluted net income per share for the three months ended March 31, 2019 and 2018 : For the Three Months 2019 2018 (In thousands, except share data) Net income available to common stockholders $ 12,657 $ 15,787 Weighted-average common shares outstanding 51,114,984 50,997,681 Less: average number of unallocated ESOP award shares (499,925 ) (522,739 ) Weighted-average basic shares outstanding 50,615,059 50,474,942 Dilutive effect of stock options 292,033 521,654 Weighted-average diluted shares 50,907,092 50,996,596 Net income per share: Basic $ 0.25 $ 0.31 Diluted $ 0.25 $ 0.31 There were no anti-dilutive stock options during the three months ended March 31, 2019 and 2018 , respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13. Fair Value Measurements Fair value estimates are made as of a specific point in time based on the characteristics of the assets and liabilities and relevant market information. In accordance with FASB ASC 820, the fair value estimates are measured within the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1: Quoted prices are available in active markets for identical assets and liabilities as of the reporting date. The quoted price is not adjusted because of the size of the position relative to trading volume. Level 2: Pricing inputs are observable for assets and liabilities, either directly or indirectly, but are not the same as those used in Level 1. Fair value is determined through the use of models or other valuation methodologies. Level 3: Pricing inputs are unobservable for assets and liabilities and include situations where there is little, if any, market activity and the determination of fair value requires significant judgment or estimation. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such instances, the determination of which category within the fair value hierarchy is appropriate for any given asset and liability is based on the lowest level of input that is significant to the fair value of the asset and liability. When available, quoted market prices are used. In other cases, fair values are based on estimates using present value or other valuation techniques. These techniques involve uncertainties and are significantly affected by the assumptions used and judgments made regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows, future expected loss experience and other factors. Changes in assumptions could significantly affect these estimates and could be material. Derived fair value estimates may not be substantiated by comparison to independent markets and, in certain cases, could not be realized in an immediate sale of the instrument. Fair value estimates for financial instrument fair value disclosures are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not financial instruments. Accordingly, the aggregate fair value amounts presented do not purport to represent the underlying market value of the Company. Loans Held for Sale The Company has elected the fair value option for its portfolio of residential real estate and government mortgage loans held for sale to reduce certain timing differences and better match changes in fair value of the loans with changes in the fair value of the derivative loan sale contracts used to economically hedge them. The aggregate principal amount of the residential real estate and government mortgage loans held for sale was $16.4 million and $76.6 million at March 31, 2019 and December 31, 2018 , respectively. The aggregate fair value of these loans as of the same dates was $16.2 million and $78.8 million , respectively. There were no residential real estate mortgage loans held for sale 90 days or more past due at March 31, 2019 and December 31, 2018 . Changes in the fair value of mortgage loans held for sale are reported as a component of income from mortgage banking activities in the Consolidated Statements of Net Income. The following table presents the losses in fair value related to mortgage loans held for sale for the periods indicated: Three Months Ended 2019 2018 (In thousands) Mortgage loans held for sale $ (871 ) $ (1,257 ) Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables detail the assets and liabilities carried at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. There were no transfers in and out of Level 1, Level 2 and Level 3 measurements during the three months ended March 31, 2019 and 2018 . Total Quoted Prices Other Significant (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2019 Available-for-Sale Securities: Government-sponsored residential mortgage-backed securities $ 201,930 $ — $ 201,930 $ — Government-sponsored residential collateralized debt obligations 131,527 — 131,527 — Government-sponsored commercial mortgage-backed securities 28,404 — 28,404 — Government-sponsored commercial collateralized debt obligations 145,951 — 145,951 — Asset-backed securities 158,171 — — 158,171 Corporate debt securities 94,466 — 94,466 — Obligations of states and political subdivisions 88,092 — 88,092 — Total available-for-sale debt securities $ 848,541 $ — $ 690,370 $ 158,171 Mortgage loan derivative assets $ 210 $ — $ 210 $ — Loans held for sale 16,172 — 16,172 — Marketable equity securities 409 409 — — Mortgage servicing rights 14,691 — — 14,691 Interest rate swap assets 14,302 — 14,302 — Interest rate swap liabilities 19,522 — 19,522 — December 31, 2018 Available-for-Sale Securities: Government-sponsored residential mortgage-backed securities $ 204,098 $ — $ 204,098 $ — Government-sponsored residential collateralized-debt obligations 170,719 — 170,719 — Government-sponsored commercial mortgage-backed securities 27,678 — 27,678 — Government-sponsored commercial collateralized-debt obligations 148,226 — 148,226 — Asset-backed securities 100,495 — — 100,495 Corporate debt securities 83,230 — 83,230 — Obligations of states and political subdivisions 238,901 — 238,901 — Total available-for-sale securities $ 973,347 $ — $ 872,852 $ 100,495 Mortgage loan derivative assets $ 194 $ — $ 194 $ — Mortgage loan derivative liabilities 681 — 681 — Loans held for sale 78,788 — 78,788 — Marketable equity securities 356 356 — — Mortgage servicing rights 14,739 — — 14,739 Interest rate swap assets 13,329 — 13,329 — Interest rate swap liabilities 13,920 — 13,920 — The following table presents additional information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value: Three Months Ended 2019 2018 (In thousands) Balance of available-for-sale securities, at beginning of period $ 100,495 $ 167,139 Purchases (sales) 57,021 (55,706 ) Principal payments and net accretion (11 ) (77 ) Total realized gains (losses) included in earnings — (149 ) Total unrealized gains (losses) included in other comprehensive income/loss 666 (18 ) Balance at end of period $ 158,171 $ 111,189 Balance of mortgage servicing rights, at beginning of period $ 14,739 $ 11,733 Issuances 899 781 Change in fair value recognized in net income (947 ) 819 Balance at end of period $ 14,691 $ 13,333 The following valuation methodologies are used for certain assets that are recorded at fair value on a recurring basis. Available-for-Sale and Marketable Equity Securities: Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using an independent pricing service. Level 1 securities are those traded on active markets for identical securities including U.S. treasury securities, equity securities and mutual funds. Level 2 securities include U.S. Government agency obligations, U.S. Government-sponsored enterprises, mortgage-backed securities, obligations of states and political subdivisions, corporate and other debt securities. Level 3 securities include private placement securities and thinly traded equity securities. All fair value measurements are obtained from a third party pricing service and are not adjusted by management. Matrix pricing is used for pricing most obligations of states and political subdivisions, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on securities relationships to other benchmark quoted securities. The grouping of securities is completed according to insurer, credit support, state of issuance and rating to incorporate additional spreads and municipal bond yield curves. The valuation of the Company’s asset-backed securities is determined utilizing an approach that combines advanced analytics with structural and fundamental cash flow analysis based upon observed market based yields. The third party provider’s model analyzes each instrument’s underlying collateral given observable collateral characteristics and credit statistics to extrapolate future performance and project cash flows, by incorporating expectations of default probabilities, recovery rates, prepayment speeds, loss severities and a derived discount rate. The Company has determined that due to the liquidity and significance of unobservable inputs, asset-backed securities are classified in Level 3 of the valuation hierarchy. Loans Held for Sale: The fair value of residential and government mortgage loans held for sale is estimated using quoted market prices for loans with similar characteristics provided by government-sponsored entities. Any changes in the valuation of mortgage loans held for sale is based upon the change in market interest rates between closing the loan and the measurement date and an immaterial portion attributable to changes in instrument-specific credit risk. The Company has determined that loans held for sale are classified in Level 2 of the valuation hierarchy. Mortgage Servicing Rights: A mortgage servicing right (“MSR”) asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans are expected to more than adequately compensate the Company for performing the servicing. The fair value of servicing rights is provided by a third party and is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Adjustments are recorded monthly as the cash flows derived from the valuation model change the fair value of the asset. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy. See Note 4, “Loans Receivable and Allowance for Loan Losses” in the Notes to Consolidated Financial Statements contained elsewhere in this report. Derivatives: Derivative instruments related to commitments for loans to be sold are carried at fair value. Fair value is determined through quotes obtained from actively traded mortgage markets. Any change in fair value for rate lock commitments to the borrower is based upon the change in market interest rates between making the rate lock commitment and the measurement date and, for forward loan sale commitments to the investor, is based upon the change in market interest rates from entering into the forward loan sales contract and the measurement date. Both the rate lock commitments to the borrowers and the forward loan sale commitments to investors are derivatives pursuant to the requirements of FASB ASC 815-10; however, the Company has not designated them as hedging instruments. Accordingly, they are marked to fair value through earnings. The Company’s intention is to sell the majority of its fixed rate mortgage loans with original terms of 30 years on a servicing retained basis as well as certain 10 , 15 and 20 year loans. The servicing value has been included in the pricing of the rate lock commitments. The Company estimates a fallout rate of approximately 18.4% based upon historical averages in determining the fair value of rate lock commitments. Although the use of historical averages is based upon unobservable data, the Company believes that this input is insignificant to the valuation and, therefore, has concluded that the fair value measurements meet the Level 2 criteria. The Company continually reassesses the significance of the fallout rate on the fair value measurement and updates the fallout rate accordingly. Hedging derivatives include interest rate swaps as part of management’s strategy to manage interest rate risk. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy. The following table presents additional quantitative information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value at March 31, 2019 : (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Asset-backed securities $ 158,171 Discounted Cash Flow Discount Rates 3.5% - 6.5% (4.43%) Cumulative Default % 0.2% - 14.1% (9.08%) Loss Given Default 0.1% - 4.6% (2.79%) Mortgage servicing rights $ 14,691 Discounted Cash Flow Discount Rate 11.0% - 15.5% (12.83%) Cost to Service $75 - $135 ($88.08) Float Earnings Rate 1.50% (1.50%) Asset-backed securities: Given the level of market activity for the asset-backed securities in the portfolio, the discount rates utilized in the fair value measurement were derived by analyzing current market yields for comparable securities and research reports issued by brokers and dealers in the financial services industry. Adjustments were then made for credit and structural differences between these types of securities. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases. Other significant unobservable inputs to the fair value measurement of the asset backed securities in the portfolio included prospective defaults and recoveries. The cumulative default percentage represents the lifetime defaults assumed. The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the default percentages and the fair value measurement. When default percentages increase, the fair value decreases. Other significant unobservable inputs to the fair value measurement of the collateralized debt obligations included prospective defaults and recoveries. The cumulative default percentage represents the lifetime defaults assumed, excluding currently defaulted collateral and including all performing and currently deferring collateral. As a result, the cumulative default percentage also reflects assumptions of the possibility of currently deferring collateral curing and becoming current. The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the cumulative default and loss given default percentages and the fair value measurement. When default percentages increase, the fair value decreases. Mortgage servicing rights: Given the low level of market activity in the MSR market and the general difficulty in price discovery, even when activity is at historic norms, the discount rate utilized in the fair value measurement was derived by analyzing recent and historical pricing for MSRs. Adjustments were then made for various loan and investor types underlying these MSRs. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases. Other significant unobservable inputs to the fair value measurement of MSRs include cost to service, an input that is not as simple as taking total costs and dividing by a number of loans. It is a figure informed by marginal cost and pricing for MSRs by competing firms, taking other assumptions into consideration. It is different for different loan types. There is an inverse correlation between the cost to service and the fair value measurement. When the cost assumption increase, the fair value decreases. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company may also be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with generally accepted accounting principles; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The following tables detail the assets carried at fair value on a non-recurring basis at March 31, 2019 and December 31, 2018 and indicate the fair value hierarchy of the valuation technique utilized by the Company to determine fair value. There were no liabilities measured at fair value on a non-recurring basis at March 31, 2019 and December 31, 2018 . Total Quoted Prices in Other Significant (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2019 Impaired loans $ 494 $ — $ — $ 494 Other real estate owned 1,429 — — 1,429 Total $ 1,923 $ — $ — $ 1,923 December 31, 2018 Impaired loans $ 2,847 $ — $ — $ 2,847 Other real estate owned 1,389 — — 1,389 Total $ 4,236 $ — $ — $ 4,236 The following is a description of the valuation methodologies used for certain assets that are recorded at fair value on a non-recurring basis. Impaired Loans : Accounting standards require that a creditor recognize the impairment of a loan if the present value of expected future cash flows discounted at the loan’s effective interest rate (or, alternatively, the observable market price of the loan or the fair value of the collateral) is less than the recorded investment in the impaired loan. Non-recurring fair value adjustments to collateral dependent loans are recorded, when necessary, to reflect partial write-downs and the specific reserve allocations based upon observable market price or current appraised value of the collateral less selling costs and discounts based on management’s judgment of current conditions. Based on the significance of management’s judgment, the Company records collateral dependent impaired loans as non-recurring Level 3 fair value measurements. Other Real Estate Owned : The Company classifies property acquired through foreclosure or acceptance of deed-in-lieu of foreclosure, as other real estate owned (“OREO”) in its financial statements. Upon foreclosure, the property securing the loan is recorded at fair value as determined by real estate appraisals less the estimated selling expense. Appraisals are based upon observable market data such as comparable sales within the real estate market. Assumptions are also made based on management’s judgment of the appraisals and current real estate market conditions and therefore these assets are classified as non-recurring Level 3 assets in the fair value hierarchy. Losses on assets recorded at fair value on a non-recurring basis for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended 2019 2018 (In thousands) Impaired loans $ (27 ) $ (100 ) Other real estate owned (22 ) (50 ) Total $ (49 ) $ (150 ) Disclosures about Fair Value of Financial Instruments: As of March 31, 2019 and December 31, 2018 , the carrying value and estimated fair values of the Company’s financial instruments are as described below: Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) March 31, 2019 Financial assets: Cash and cash equivalents $ 155,173 $ 155,173 $ — $ — $ 155,173 Available-for-sale securities 848,541 — 690,370 158,171 848,541 Loans held for sale 16,172 — 16,172 — 16,172 Loans receivable-net 5,697,442 — — 5,611,760 5,611,760 FHLBB stock 37,702 — — 37,702 37,702 Accrued interest receivable 25,061 — — 25,061 25,061 Derivative assets 14,512 — 14,512 — 14,512 Mortgage servicing rights 14,691 — — 14,691 14,691 Marketable equity securities 409 409 — — 409 Financial liabilities: Deposits 5,664,252 — — 5,660,505 5,660,505 Mortgagors’ and investors’ escrow accounts 11,510 — — 11,510 11,510 FHLBB advances and other borrowings 826,668 — 827,451 — 827,451 Derivative liabilities 19,522 — 19,522 — 19,522 December 31, 2018 Financial assets: Cash and cash equivalents $ 97,964 $ 97,964 $ — $ — $ 97,964 Available-for-sale securities 973,347 — 872,852 100,495 973,347 Loans held for sale 78,788 — 78,788 — 78,788 Loans receivable-net 5,622,589 — — 5,533,626 5,533,626 FHLBB stock 41,407 — — 41,407 41,407 Accrued interest receivable 24,823 — — 24,823 24,823 Derivative assets 13,523 — 13,523 — 13,523 Mortgage servicing rights 14,739 — — 14,739 14,739 Marketable equity securities 356 356 — — 356 Financial liabilities: Deposits 5,670,599 — — 5,661,129 5,661,129 Mortgagors’ and investors’ escrow accounts 4,685 — — 4,685 4,685 FHLBB advances and other borrowings 899,626 — 900,146 — 900,146 Derivative liabilities 14,601 — 14,601 — 14,601 Certain financial instruments and all nonfinancial investments are exempt from disclosure requirements. Accordingly, the aggregate fair value of amounts presented above may not necessarily represent the underlying fair value of the Company. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies Financial Instruments With Off-Balance Sheet Risk In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit through issuing standby letters of credit and undisbursed portions of construction loans and involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized on the Consolidated Statements of Condition. The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer defaults and the value of any existing collateral obligations is deemed worthless. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. Off-balance sheet financial instruments whose contract amounts represent credit risk are as follows at March 31, 2019 and December 31, 2018 : March 31, December 31, (In thousands) Commitments to extend credit: Commitment to grant loans $ 146,342 $ 140,875 Undisbursed construction loans 145,918 122,838 Undisbursed home equity lines of credit 461,316 453,634 Undisbursed commercial lines of credit 619,575 515,193 Standby letters of credit 17,567 13,252 Unused credit card lines 21,468 21,331 Unused checking overdraft lines of credit 2,431 2,322 Total $ 1,414,617 $ 1,269,445 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Since these commitments could expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include residential and commercial property, accounts receivable, inventory, property, plant and equipment, deposits, and securities. Other Commitments The Company invests in partnerships, including low income housing tax credit, new markets housing tax credit, and alternative energy tax credit partnerships. The net carrying balance of these investments totaled $51.8 million at March 31, 2019 and is included in other assets in the Consolidated Statement of Condition. At March 31, 2019 , the Company was contractually committed under these limited partnership agreements to make additional capital contributions of $3.5 million , which constitutes our maximum potential obligation to these partnerships. Legal Matters The Company is involved in various legal proceedings that have arisen in the normal course of business. The Company is not involved in any legal proceedings deemed to be material as of March 31, 2019 . |
Investment in D.C. Solar Tax-Ad
Investment in D.C. Solar Tax-Advantaged Funds | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in D.C. Solar Tax-Advantaged Funds | Note 15. Investment in D.C. Solar Tax-Advantaged Funds The Company invests, as a limited liability member, in Solar Eclipse Investment Fund X, LLC, Solar Eclipse Investment Fund XV, LLC, and Solar Eclipse Investment Fund XXII, LLC (collectively, the “LLCs”), which generate solar investment tax credits for the Company. The managing member for each of the LLCs is Solarmore Management Services, Inc. Solarmore Management Services, Inc. also appears to be the managing member of a number of other solar investment tax credit LLC funds (collectively, the “Funds”). The LLCs were established to participate in a government sponsored program to promote solar technology and obtain financing to acquire approximately 500 mobile solar generators and place those generators in service to qualify for a federal tax credit based upon the fair value of the generator units. Each LLC obtained financing from D.C. Solar Solutions, Inc. (“Solutions”) which is also the manufacturer and seller of the generators; and each LLC entered into a master lease arrangement with D.C. Solar Distribution, Inc. (“Distribution”), the entity that is responsible for the end sub-lease activity supporting the fair value of the master lease agreement. Solutions and Distribution are indirectly related. In December 2018, Solutions and Distribution (collectively “D.C. Solar”) had certain assets seized by the U.S. Government. In late January and early February, 2019, D.C. Solar filed voluntary petitions for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in an attempt to reorganize. On March 22, 2019, mainly due to the lack of financing to maintain the on-going operations of these companies, ambiguity around actual inventory in existence and the U.S. Government’s seizure of certain assets, the bankruptcy cases were converted to cases under Chapter 7. While a Federal criminal investigation is ongoing, an FBI affidavit filed in the bankruptcy cases contains allegations of a potential fraud perpetrated by the principals of D.C. Solar, including allegations of fictitious or overstated sales of mobile solar generators sold to the Funds (including the LLCs) as well as the fabrication of sublease revenue streams for the generators. The potential risk of loss to the Company with respect to its investments in the LLCs as of March 31, 2019 is approximately $41.7 million , which is primarily comprised of the potential loss on the investment in the LLCs and the potential tax credit benefit reversal, among other things. This total does not include litigation exposure, potential costs, penalties, interest or recoveries. As of March 31, 2019, uncertainty remains around the number of generators owned by the LLCs actually placed in service with an appropriate sub-lease supporting the fair value of each generator. The Company, in coordination with other Fund investors and the managing member of the Funds, has engaged a third party unaffiliated inventory firm to report on the actual number of generators in existence. The report has not yet been finalized. The Company is in the process of evaluating the impact to the investment in and the tax credits generated from the LLCs as a result of the bankruptcy filings and fraud allegations and is currently monitoring the investments for an estimable and probable loss. As of May 7, 2019, no measurable loss has been identified, but the Company believes a loss is more likely than not. The following table provides, solely on an illustrative basis, the potential impact on capital if the Company were to recognize a complete loss on the LLC investments including total tax benefit recapture. The Company does not currently believe a complete loss to be likely. The total exposure reflected in the table does not include litigation exposure, potential costs, penalties, interest or recoveries. March 31, 2019 December 31, 2018 Actual Proforma (1) Actual United Financial Bancorp, Inc. Tangible Common Equity to Tangible Assets 10.33 % 7.80 % 8.15 % Tier 1 Capital Ratio 10.33 % 9.76 % 10.40 % Total Capital to Risk Weighted Assets Ratio 12.52 % 11.97 % 12.60 % Tier 1 to Total Average Assets Ratio 8.43 % 7.79 % 8.43 % United Bank Tier 1 Capital Ratio 10.78 % 10.72 % 10.95 % Total Capital to Risk Weighted Assets Ratio 11.70 % 11.66 % 11.87 % Tier 1 to Total Average Assets Ratio 8.77 % 8.68 % 8.99 % (1) Presented as estimates, within a range of +/- 5 bps. For additional information on the risk of our investment in tax-advantaged funds, see Part II - Other Information, Item 1A. Risk Factors. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations United Financial Bancorp, Inc. (the “Company” or “United”) is headquartered in Hartford, Connecticut, and through United Bank (the “Bank”) and various subsidiaries, delivers financial services to individuals, families and businesses primarily throughout Connecticut and Massachusetts through 59 banking offices, its commercial loan production offices, its mortgage loan production offices, 72 ATMs, telephone banking, mobile banking and online banking ( www.bankatunited.com ). |
Basis of Presentation | Basis of Presentation The consolidated interim financial statements and the accompanying notes presented in this report include the accounts of the Company, the Bank and the Bank’s wholly-owned subsidiaries, United Bank Mortgage Company, United Bank Investment Corp., Inc., United Bank Commercial Properties, Inc., United Bank Residential Properties, Inc., United Wealth Management, Inc., United Bank Investment Sub, Inc., UB Properties, LLC, United Financial Realty HC, Inc. and UCB Securities, Inc. II. In addition, the Bank has a real estate investment trust subsidiary, United Financial Business Trust I, which is a wholly owned subsidiary of United Financial Realty HC, Inc. The consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included in the interim unaudited consolidated financial statements. Interim results are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any future period. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s 2018 audited consolidated financial statements and notes thereto included in United Financial Bancorp, Inc.’s Annual Report on Form 10-K as of and for the year ended December 31, 2018 . |
Common Share Repurchases | Common Share Repurchases The Company is chartered in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized, but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances. |
Reclassifications | Reclassifications Certain reclassifications have been made in prior periods’ consolidated financial statements to conform to the 2019 presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash equivalents. |
Use of Estimates | Use of Estimates The preparation of the consolidated interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results in the future could vary from the amounts derived from management’s estimates and assumptions. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the realizability of deferred tax assets, the evaluation of securities for other-than-temporary impairment, the valuation of derivative instruments and hedging activities, and goodwill impairment valuations. |
Recently Adopted Accounting Principles Previously Disclosed and Accounting Standards Issued but Not Yet Adopted | Recently Adopted Accounting Principles Previously Disclosed Effective January 1, 2019, the Company adopted the following Accounting Standards Updates (“ASUs”): • ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvement to Nonemployee Share-Based Payment Accounting • ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities • ASU No. 2016-02, Leases (Topic 842) • ASU No. 2018-11, Leases (Topic 842): Targeted Improvements • ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors See Note 3, “Securities”, and Note 5, “Leases” for further discussion of the impact of ASU No. 2017-08, ASU No. 2016-02, ASU No. 2018-11, and ASU No. 2018-20. The adoption of ASU No. 2018-07 did not have a material impact on the Company’s consolidated interim financial statements. Accounting Standards Issued but Not Yet Adopted The following list identifies ASUs applicable to the Company that have been issued but are not yet effective: Disclosure In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this Update remove the disclosure requirements that no longer are considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant. The amendments in this Update are effective for fiscal years ending after December 15, 2020. Early adoption is permitted and amendments should be applied on a retrospective basis to all periods presented. This ASU will affect the Company’s disclosure only and will not have a financial statement impact. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU updates disclosure requirements of Accounting Standards Codification (“ASC”) Topic 820 in order to improve the effectiveness of the disclosures. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments affecting changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments are to be applied retrospectively to all periods presented upon their effective date. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. This ASU will affect the Company’s disclosures only and will not have a financial statement impact. Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the Board’s guidance on the impairment of financial instruments. The ASU adds to GAAP an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. For public business entities that are SEC filers, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The expected credit loss model will require a financial asset to be presented at the net amount expected to be collected. The impact on adoption is a one-time adjustment to retained earnings. The Company is evaluating the provisions of ASU No. 2016-13 and will closely monitor developments and additional guidance to determine the potential impact on the Company’s consolidated financial statements. The ASU is expected to increase loan loss reserves, the amount of which is uncertain at this time. The Company has formed a committee led by the Bank’s Chief Credit Officer, which includes the Chief Financial Officer and Chief Risk Officer, to assist in identifying, implementing and evaluating the impact of the required changes to loan loss estimation models and processes. The Company has evaluated portfolio segments and methodologies and is evaluating the control environment under the new standard. Additionally, the Company has initiated parallel testing, however any results are preliminary. The Company has engaged a third party to perform a review of model governance and related internal controls, the outcome of which could change the impact of ASU No. 2016-13. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available for Sale Securities | The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities classified as available-for-sale at March 31, 2019 and December 31, 2018 are as follows: Amortized Gross Gross Fair (In thousands) March 31, 2019 Available-for-sale: Government-sponsored residential mortgage-backed securities $ 202,586 $ 506 $ (1,162 ) $ 201,930 Government-sponsored residential collateralized debt obligations 131,755 275 (503 ) 131,527 Government-sponsored commercial mortgage-backed securities 28,617 — (213 ) 28,404 Government-sponsored commercial collateralized debt obligations 151,545 94 (5,688 ) 145,951 Asset-backed securities 159,382 240 (1,451 ) 158,171 Corporate debt securities 94,959 276 (769 ) 94,466 Obligations of states and political subdivisions 87,912 734 (554 ) 88,092 Total available-for-sale securities $ 856,756 $ 2,125 $ (10,340 ) $ 848,541 December 31, 2018 Available-for-sale: Government-sponsored residential mortgage-backed securities $ 208,916 $ — $ (4,818 ) $ 204,098 Government-sponsored residential collateralized debt obligations 172,468 270 (2,019 ) 170,719 Government-sponsored commercial mortgage-backed securities 28,694 — (1,016 ) 27,678 Government-sponsored commercial collateralized debt obligations 155,091 — (6,865 ) 148,226 Asset-backed securities 102,371 15 (1,891 ) 100,495 Corporate debt securities 86,462 48 (3,280 ) 83,230 Obligations of states and political subdivisions 250,593 425 (12,117 ) 238,901 Total available-for-sale securities $ 1,004,595 $ 758 $ (32,006 ) $ 973,347 |
Held-to-maturity Securities | The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities classified as available-for-sale at March 31, 2019 and December 31, 2018 are as follows: Amortized Gross Gross Fair (In thousands) March 31, 2019 Available-for-sale: Government-sponsored residential mortgage-backed securities $ 202,586 $ 506 $ (1,162 ) $ 201,930 Government-sponsored residential collateralized debt obligations 131,755 275 (503 ) 131,527 Government-sponsored commercial mortgage-backed securities 28,617 — (213 ) 28,404 Government-sponsored commercial collateralized debt obligations 151,545 94 (5,688 ) 145,951 Asset-backed securities 159,382 240 (1,451 ) 158,171 Corporate debt securities 94,959 276 (769 ) 94,466 Obligations of states and political subdivisions 87,912 734 (554 ) 88,092 Total available-for-sale securities $ 856,756 $ 2,125 $ (10,340 ) $ 848,541 December 31, 2018 Available-for-sale: Government-sponsored residential mortgage-backed securities $ 208,916 $ — $ (4,818 ) $ 204,098 Government-sponsored residential collateralized debt obligations 172,468 270 (2,019 ) 170,719 Government-sponsored commercial mortgage-backed securities 28,694 — (1,016 ) 27,678 Government-sponsored commercial collateralized debt obligations 155,091 — (6,865 ) 148,226 Asset-backed securities 102,371 15 (1,891 ) 100,495 Corporate debt securities 86,462 48 (3,280 ) 83,230 Obligations of states and political subdivisions 250,593 425 (12,117 ) 238,901 Total available-for-sale securities $ 1,004,595 $ 758 $ (32,006 ) $ 973,347 |
Amortized Cost and Fair Value of Debt Securities | The amortized cost and fair value of debt securities at March 31, 2019 by contractual maturities are presented below. Actual maturities may differ from contractual maturities because some securities may be called or repaid without any penalties. Also, because mortgage-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary. Available-for-Sale Amortized Fair (In thousands) Maturity: Within 1 year $ — $ — After 1 year through 5 years 10,747 10,820 After 5 years through 10 years 87,345 86,743 After 10 years 84,779 84,995 182,871 182,558 Government-sponsored residential mortgage-backed securities 202,586 201,930 Government-sponsored residential collateralized debt obligations 131,755 131,527 Government-sponsored commercial mortgage-backed securities 28,617 28,404 Government-sponsored commercial collateralized debt obligations 151,545 145,951 Asset-backed securities 159,382 158,171 Total available-for-sale debt securities $ 856,756 $ 848,541 |
Summary of Gross Unrealized Losses and Fair Value | The following table summarizes gross unrealized losses and fair value, aggregated by category and length of time the securities have been in a continuous unrealized loss position, as of March 31, 2019 and December 31, 2018 : Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) March 31, 2019 Available-for-sale: Government-sponsored residential mortgage-backed securities $ — $ — $ 123,622 $ (1,162 ) $ 123,622 $ (1,162 ) Government-sponsored residential collateralized debt obligations — — 63,316 (503 ) 63,316 (503 ) Government-sponsored commercial mortgage-backed securities — — 28,404 (213 ) 28,404 (213 ) Government-sponsored commercial collateralized debt obligations — — 138,443 (5,688 ) 138,443 (5,688 ) Asset-backed securities 77,129 (848 ) 26,495 (603 ) 103,624 (1,451 ) Corporate debt securities 4,460 (55 ) 39,222 (714 ) 43,682 (769 ) Obligations of states and political subdivisions 856 (3 ) 29,564 (551 ) 30,420 (554 ) Total available-for-sale securities $ 82,445 $ (906 ) $ 449,066 $ (9,434 ) $ 531,511 $ (10,340 ) December 31, 2018 Available-for-sale: Government-sponsored residential mortgage-backed securities $ 97,634 $ (1,590 ) $ 106,464 $ (3,228 ) $ 204,098 $ (4,818 ) Government-sponsored residential collateralized debt obligations 5,093 (54 ) 107,291 (1,965 ) 112,384 (2,019 ) Government-sponsored commercial mortgage-backed securities — — 27,678 (1,016 ) 27,678 (1,016 ) Government-sponsored commercial collateralized debt obligations 15,787 (176 ) 132,439 (6,689 ) 148,226 (6,865 ) Asset-backed securities 62,444 (1,272 ) 23,426 (619 ) 85,870 (1,891 ) Corporate debt securities 43,937 (1,394 ) 33,245 (1,886 ) 77,182 (3,280 ) Obligations of states and political subdivisions 89,312 (2,204 ) 137,590 (9,913 ) 226,902 (12,117 ) Total available-for-sale securities $ 314,207 $ (6,690 ) $ 568,133 $ (25,316 ) $ 882,340 $ (32,006 ) |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Summary of Company's Loan Portfolio | A summary of the Company’s loan portfolio is as follows: March 31, 2019 December 31, 2018 Amount Percent Amount Percent (Dollars in thousands) Commercial real estate loans: Owner-occupied $ 439,366 7.7 % $ 443,398 7.8 % Investor non-owner occupied 1,932,137 33.7 1,911,070 33.8 Construction 94,649 1.6 87,493 1.5 Total commercial real estate loans 2,466,152 43.0 2,441,961 43.1 Commercial business loans 920,165 16.1 886,770 15.7 Consumer loans: Residential real estate 1,322,423 23.1 1,313,373 23.2 Home equity 583,368 10.2 583,454 10.3 Residential construction 13,620 0.2 20,632 0.4 Other consumer 425,854 7.4 410,249 7.3 Total consumer loans 2,345,265 40.9 2,327,708 41.2 Total loans 5,731,582 100.0 % 5,656,439 100.0 % Net deferred loan costs and premiums 17,901 17,786 Allowance for loan losses (52,041 ) (51,636 ) Loans - net $ 5,697,442 $ 5,622,589 |
Company's Loans by Risk Rating | The following table presents the Company’s loans by risk rating at March 31, 2019 and December 31, 2018 : Owner-Occupied CRE Investor CRE Construction Commercial Business Residential Real Estate Home Equity Other Consumer (In thousands) March 31, 2019 Loans rated 1-5 $ 406,900 $ 1,904,846 $ 105,466 $ 874,939 $ 1,302,651 $ 576,626 $ 423,539 Loans rated 6 17,664 9,100 2,068 31,337 2,644 916 — Loans rated 7 14,802 18,191 735 13,889 17,128 5,826 2,315 Loans rated 8 — — — — — — — Loans rated 9 — — — — — — — $ 439,366 $ 1,932,137 $ 108,269 $ 920,165 $ 1,322,423 $ 583,368 $ 425,854 December 31, 2018 Loans rated 1-5 $ 410,403 $ 1,884,767 $ 104,848 $ 844,541 $ 1,294,623 $ 576,509 $ 407,935 Loans rated 6 17,134 6,544 1,994 28,385 2,429 740 — Loans rated 7 15,861 19,759 1,283 13,844 16,321 6,205 2,314 Loans rated 8 — — — — — — — Loans rated 9 — — — — — — — $ 443,398 $ 1,911,070 $ 108,125 $ 886,770 $ 1,313,373 $ 583,454 $ 410,249 |
Summary of Activity in Allowance for Loan Losses | Activity in the allowance for loan losses for the periods ended March 31, 2019 and 2018 was as follows: Owner-Occupied CRE Investor CRE Construction Commercial Residential Real Estate Home Equity Other Consumer Unallocated Total (In thousands) Three Months Ended March 31, 2019 Balance, beginning of period $ 4,459 $ 17,011 $ 1,653 $ 10,961 $ 7,971 $ 3,220 $ 4,381 $ 1,980 $ 51,636 Provision (credit) for loan losses (311 ) 661 69 507 (135 ) 455 677 120 2,043 Loans charged off — — (149 ) (518 ) (108 ) (349 ) (938 ) — (2,062 ) Recoveries of loans previously charged off — 5 — 60 97 22 240 — 424 Balance, end of period $ 4,148 $ 17,677 $ 1,573 $ 11,010 $ 7,825 $ 3,348 $ 4,360 $ 2,100 $ 52,041 Three Months Ended March 31, 2018 Balance, beginning of period $ 3,754 $ 15,916 $ 1,601 $ 10,608 $ 7,694 $ 3,258 $ 2,523 $ 1,745 $ 47,099 Provision for loan losses 173 94 53 796 203 252 268 100 1,939 Loans charged off — (64 ) (21 ) (653 ) (181 ) (349 ) (425 ) — (1,693 ) Recoveries of loans previously charged off — 37 — 230 69 56 178 — 570 Balance, end of period $ 3,927 $ 15,983 $ 1,633 $ 10,981 $ 7,785 $ 3,217 $ 2,544 $ 1,845 $ 47,915 |
Summary of Allowance for Loan Losses and Impaired Loans | Further information pertaining to the allowance for loan losses and impaired loans at March 31, 2019 and December 31, 2018 follows: Owner-Occupied CRE Investor CRE Construction Commercial Residential Real Estate Home Equity Other Consumer Unallocated Total (In thousands) March 31, 2019 Allowance related to loans individually evaluated and deemed impaired $ — $ — $ 34 $ — $ 72 $ 31 $ 236 $ — $ 373 Allowance related to loans collectively evaluated and not deemed impaired 4,148 17,677 1,539 11,010 7,753 3,317 4,124 2,100 51,668 Total allowance for loan losses $ 4,148 $ 17,677 $ 1,573 $ 11,010 $ 7,825 $ 3,348 $ 4,360 $ 2,100 $ 52,041 Loans deemed impaired $ 2,402 $ 6,491 $ 869 $ 8,806 $ 20,583 $ 8,002 $ 1,314 $ 48,467 Loans not deemed impaired 436,964 1,925,485 107,400 911,359 1,300,001 575,366 423,468 5,680,043 Loans acquired with deteriorated credit quality — 161 — — 1,839 — 1,072 3,072 Total loans $ 439,366 $ 1,932,137 $ 108,269 $ 920,165 $ 1,322,423 $ 583,368 $ 425,854 $ 5,731,582 December 31, 2018 Allowance related to loans individually evaluated and deemed impaired $ — $ — $ 92 $ 114 $ 120 $ 1 $ 243 $ — $ 570 Allowance related to loans collectively evaluated and not deemed impaired 4,459 17,011 1,561 10,847 7,851 3,219 4,138 1,980 51,066 Total allowance for loan losses $ 4,459 $ 17,011 $ 1,653 $ 10,961 $ 7,971 $ 3,220 $ 4,381 $ 1,980 $ 51,636 Loans deemed impaired $ 3,034 $ 6,895 $ 1,047 $ 5,219 $ 20,114 $ 8,257 $ 1,318 $ 45,884 Loans not deemed impaired 440,364 1,903,998 107,078 881,551 1,291,255 575,197 407,851 5,607,294 Loans acquired with deteriorated credit quality — 177 — — 2,004 — 1,080 3,261 Total loans $ 443,398 $ 1,911,070 $ 108,125 $ 886,770 $ 1,313,373 $ 583,454 $ 410,249 $ 5,656,439 |
Summary of Past Due and Non-Accrual Loans | The following is a summary of past due and non-accrual loans at March 31, 2019 and December 31, 2018 , including purchased credit impaired loans: 30-59 Days Past Due 60-89 Days Past Due Past Due 90 Total Past Due Past Due Loans on (In thousands) March 31, 2019 Owner-occupied CRE $ 172 $ 210 $ 778 $ 1,160 $ — $ 1,880 Investor CRE 2,725 601 — 3,326 — 739 Construction — — 736 736 — 736 Commercial business loans 3,505 986 3,129 7,620 2,130 2,500 Residential real estate 3,390 2,724 9,153 15,267 1,839 16,304 Home equity 2,732 1,062 4,315 8,109 — 5,800 Other consumer 838 279 1,489 2,606 264 1,240 Total $ 13,362 $ 5,862 $ 19,600 $ 38,824 $ 4,233 $ 29,199 December 31, 2018 Owner-occupied CRE $ 1,745 $ 7 $ 352 $ 2,104 $ — $ 2,503 Investor CRE 1,306 91 546 1,943 — 1,131 Construction 331 — 913 1,244 — 913 Commercial business loans 5,455 1,582 2,803 9,840 1,387 2,481 Residential real estate 11,214 5,216 9,448 25,878 2,004 16,214 Home equity 1,498 779 4,349 6,626 — 6,192 Other consumer 1,123 359 1,393 2,875 154 1,243 Total $ 22,672 $ 8,034 $ 19,804 $ 50,510 $ 3,545 $ 30,677 |
Summary of Impaired Loans with and without Valuation Allowance | The following is a summary of impaired loans with and without a valuation allowance as of March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 Recorded Unpaid Related Recorded Unpaid Related (In thousands) Impaired loans without a valuation allowance: Owner-occupied CRE $ 2,402 $ 2,790 $ 3,034 $ 3,422 Investor CRE 6,491 6,760 6,895 7,153 Construction 698 1,270 333 1,339 Commercial business loans 8,806 11,180 5,105 7,325 Residential real estate 18,419 20,275 18,244 20,153 Home equity 7,707 9,319 8,132 9,483 Other consumer 721 722 725 725 Total 45,244 52,316 42,468 49,600 Impaired loans with a valuation allowance: Construction 171 171 $ 34 714 965 $ 92 Commercial business loans — — — 114 122 114 Residential real estate 2,164 2,246 72 1,870 2,069 120 Home equity 295 376 31 125 130 1 Other consumer 593 593 236 593 593 243 Total 3,223 3,386 373 3,416 3,879 570 Total impaired loans $ 48,467 $ 55,702 $ 373 $ 45,884 $ 53,479 $ 570 |
Average Recorded Investment in Impaired Loans | The following is a summary of average recorded investment in impaired loans and interest income recognized on those loans for the periods indicated: For the Three Months For the Three Months Average Interest Average Interest Owner-occupied CRE $ 2,718 $ 24 $ 2,624 $ 32 Investor CRE 6,693 76 8,859 109 Construction 958 1 1,874 10 Commercial business loans 7,013 39 5,194 52 Residential real estate 20,349 245 19,251 207 Home equity 8,130 31 8,427 78 Other consumer 1,316 1 390 — $ 47,177 $ 417 $ 46,619 $ 488 |
Troubled Debt Restructurings | The following table provides detail of TDR balances for the periods presented: At March 31, At December 31, (In thousands) Recorded investment in TDRs: Accrual status $ 19,267 $ 15,208 Non-accrual status 5,479 6,971 Total recorded investment in TDRs $ 24,746 $ 22,179 Accruing TDRs performing under modified terms more than one year $ 12,792 $ 12,609 Specific reserves for TDRs included in the balance of allowance for loan losses $ 103 $ 213 Additional funds committed to borrowers in TDR status $ — $ 7 |
Loans Restructured as Troubled Debt Restructurings | Loans restructured as TDRs during the three months ended March 31, 2019 and 2018 are set forth in the following table: Three Months Ended Number Pre-Modification Post-Modification (Dollars in thousands) March 31, 2019 Commercial business 5 $ 3,512 $ 3,512 Residential real estate 1 429 429 Total TDRs 6 $ 3,941 $ 3,941 March 31, 2018 Construction 1 $ 965 $ 965 Residential real estate 4 2,861 2,861 Home equity 4 320 320 Total TDRs 9 $ 4,146 $ 4,146 |
Summary of How Loans were Modified as TDRs | The following table provides information on loan balances modified as TDRs during the period: Three Months Ended March 31, 2019 2018 Extended Adjusted Rate and Extended Maturity Payment Deferral Other Extended Adjusted Rate and Extended Maturity Payment Deferral Other (In thousands) Construction $ — $ — $ — $ — $ 965 $ — $ — $ — Commercial business — — — 3,512 — — — — Residential real estate 429 — — — — — 2,861 — Home equity — — — — 61 259 — — $ 429 $ — $ — $ 3,512 $ 1,026 $ 259 $ 2,861 $ — |
Summary of Loans Modified as TDRs within Previous 12 Months and Payment Default | The following table provides information on loans modified as TDRs within the previous 12 months and for which there was a payment default during the periods presented: March 31, 2019 March 31, 2018 Number of Recorded Number of Recorded (In thousands) Residential real estate — $ — 1 $ 179 Home equity 1 25 2 261 Total 1 $ 25 3 $ 440 |
Summary of Mortgage Servicing Rights Activity | The following table summarizes mortgage servicing rights activity for the three months ended March 31, 2019 and 2018 . For the Three Months 2019 2018 (In thousands) Mortgage servicing rights: Balance at beginning of period $ 14,739 $ 11,733 Change in fair value recognized in net income (947 ) 819 Issuances 899 781 Fair value of mortgage servicing rights at end of period $ 14,691 $ 13,333 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows: Three Months Ended March 31, 2019 (In thousands) Operating lease cost $ 1,672 Finance lease cost: Amortization of right-of-use assets 89 Interest on lease liabilities 63 Sublease income (223 ) Lease income (98 ) Total lease cost $ 1,503 Other information related to leases as of March 31, 2019 is as follows: March 31, Weighted Average Remaining Lease Term (in years): Operating Leases 12.00 Finance Leases 13.00 Weighted Average Discount Rate: Operating Leases 3.53 % Finance Leases 5.44 % |
Maturities of Lease Liabilities, Operating Leases | Maturities of lease liabilities as of March 31, 2019 are as follows: Operating Leases Finance Leases (In thousands) 2019 (remaining nine months) $ 5,088 $ 386 2020 7,189 515 2021 7,021 515 2022 6,555 515 2023 5,447 515 Thereafter 38,252 3,929 Total lease payments 69,552 6,375 Less: imputed interest (13,287 ) (1,790 ) Total $ 56,265 $ 4,585 |
Maturities of Lease Liabilities, Finance Leases | Maturities of lease liabilities as of March 31, 2019 are as follows: Operating Leases Finance Leases (In thousands) 2019 (remaining nine months) $ 5,088 $ 386 2020 7,189 515 2021 7,021 515 2022 6,555 515 2023 5,447 515 Thereafter 38,252 3,929 Total lease payments 69,552 6,375 Less: imputed interest (13,287 ) (1,790 ) Total $ 56,265 $ 4,585 |
Maturities of Rent Receivable | Maturities of rents receivable as of March 31, 2019 are as follows: Operating Leases (In thousands) 2019 (remaining nine months) $ 1,019 2020 1,391 2021 1,266 2022 841 2023 144 Thereafter 297 Total lease payments received $ 4,958 |
Goodwill and Core Deposit Int_2
Goodwill and Core Deposit Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill and Core Deposit Intangible Assets | The changes in the carrying amount of core deposit intangible assets are summarized as follows: Core Deposit Intangibles (In thousands) Balance at December 31, 2017 $ 4,491 Amortization expense (1,350 ) Acquisitions 2,886 Balance at December 31, 2018 $ 6,027 Amortization expense (420 ) Balance at March 31, 2019 $ 5,607 Estimated amortization expense for the years ending December 31, 2019 (remaining nine months) $ 1,118 2020 1,293 2021 1,048 2022 803 2023 559 2024 and thereafter 786 Total remaining $ 5,607 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Contractual Maturities and Weighted-Average Rates of Outstanding Advances | Contractual maturities and weighted-average rates of outstanding advances from the FHLBB as of March 31, 2019 and December 31, 2018 are summarized below: March 31, 2019 December 31, 2018 Amount Weighted- Amount Weighted- (Dollars in thousands) 2019 $ 685,000 2.69 % $ 785,000 2.55 % 2020 33,000 2.61 8,000 2.33 2021 15,000 2.80 — — 2022 — — — — 2023 2,431 2.51 2,557 2.51 Thereafter 1,512 2.58 1,531 2.58 $ 736,943 2.68 % $ 797,088 2.54 % |
Schedule of Other Borrowings by Category | The following table presents other borrowings by category as of the dates indicated: March 31, 2019 December 31, 2018 (In thousands) Subordinated debentures $ 80,261 $ 80,201 Wholesale repurchase agreements — 10,000 Customer repurchase agreements 9,292 8,361 Other — 3,793 Total other borrowings $ 89,553 $ 102,355 |
Schedule of Outstanding Borrowings Under Repurchase Agreements | The following table presents the Company’s outstanding borrowings under repurchase agreements as of March 31, 2019 and December 31, 2018 : Remaining Contractual Maturity of the Agreements Overnight Up to 1 Year 1 - 3 Years Greater than 3 Years Total (In thousands) March 31, 2019 Repurchase Agreements U.S. Agency Securities $ 9,292 $ — $ — $ — $ 9,292 December 31, 2018 Repurchase Agreements U.S. Treasury and agency Securities $ 8,361 $ 10,000 $ — $ — $ 18,361 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities | Information about interest rate swap agreements and non-hedging derivative assets and liabilities as of March 31, 2019 and December 31, 2018 is as follows: Notional Amount Weighted-Average Remaining Maturity Weighted-Average Rate Estimated Fair Value, Net Asset (Liability) Received Paid (In thousands) (In years) (In thousands) March 31, 2019 Cash flow hedges: Interest rate swaps $ 445,000 3.91 2.69 % 2.53 % $ (4,695 ) Non-hedging derivatives: Forward loan sale commitments 31,127 0.00 1 Derivative loan commitments 14,734 0.00 209 Interest rate swap 7,500 7.29 (517 ) Loan level swaps - dealer(1) 633,700 6.51 4.30 % 4.12 % (7,807 ) Loan level swaps - borrowers(1) 633,700 6.51 4.12 % 4.30 % 7,800 Forward starting loan level swaps - dealer(1) 8,000 8.45 TBD (2) 5.11 % (198 ) Forward starting loan level swaps - borrower(1) 8,000 8.45 5.11 % TBD (2) 197 Total $ 1,781,761 $ (5,010 ) December 31, 2018 Cash flow hedges: Forward starting interest rate swaps on future borrowings $ 50,000 5.22 TBD (3) 2.67 % $ (356 ) Interest rate swaps 395,000 4.02 2.59 % 2.51 % 457 Non-hedging derivatives: Forward loan sale commitments 85,043 0.00 (681 ) Derivative loan commitments 8,491 0.00 194 Interest rate swap 7,500 7.54 (686 ) Loan level swaps - dealer(1) 640,760 6.88 4.20 % 4.10 % 2,068 Loan level swaps - borrowers(1) 640,760 6.88 4.10 % 4.20 % (2,074 ) Forward starting loan level swaps - dealer(1) 8,000 8.70 TBD (2) 5.11 % (37 ) Forward starting loan level swaps - borrower(1) 8,000 8.70 5.11 % TBD (2) 37 Total $ 1,843,554 $ (1,078 ) (1) The Company offers a loan level hedging product to qualifying commercial borrowers that seek to mitigate risk to rising interest rates. As such, the Company enters into equal and offsetting trades with dealer counterparties. (2) The floating leg of the forward starting loan level hedge is indexed to the one month USD-LIBOR-BBA, as determined one London banking day prior to the tenth day of each calendar month, commencing with the effective trade date on September 10, 2020 . (3) The receiver leg of the cash flow hedge is floating rate and indexed to the 3-month USD-LIBOR-BBA, as determined two London banking days prior to the first day of each calendar quarter, commencing with the earliest effective trade. The earliest effective trade date for this forward starting cash flow hedge was March 20, 2019 for the period ended December 31, 2018. |
Tabular Disclosure of Fair Values of Derivative Instruments | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Condition as of March 31, 2019 and December 31, 2018 : Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location Mar 31, 2019 Dec 31, 2018 Balance Sheet Location Mar 31, 2019 Dec 31, 2018 (In thousands) Derivatives designated as hedging instruments: Interest rate swap - cash flow hedge Other Assets $ 145 $ 1,610 Other Liabilities $ 4,840 $ 1,509 Total derivatives designated as hedging instruments $ 145 $ 1,610 $ 4,840 $ 1,509 Derivatives not designated as hedging instruments: Forward loan sale commitments Other Assets $ 1 $ — Other Liabilities $ — $ 681 Derivative loan commitments Other Assets 209 194 Other Liabilities — — Interest rate swap Other Assets — — Other Liabilities 517 686 Interest rate swap - with customers Other Assets 10,880 4,805 Other Liabilities 3,080 6,879 Interest rate swap - with counterparties Other Assets 3,080 6,877 Other Liabilities 10,887 4,809 Forward starting loan level swap Other Assets 197 37 Other Liabilities 198 37 Total derivatives not designated as hedging $ 14,367 $ 11,913 $ 14,682 $ 13,092 |
Schedule of Effect of Derivative Instruments in Statements of Operations | The tables below presents the effect of derivative instruments in the Company’s Statements of Changes in Stockholders’ Equity designated as hedging instruments for the three months ended March 31, 2019 and 2018 : Cash Flow Hedges Amount of Gain (Loss) Recognized in AOCI (Effective Portion) Derivatives Designated as Cash Flow Hedging Instruments Three Months Ended March 31, 2019 2018 (In thousands) Interest rate swaps $ (4,573 ) $ 4,432 Amount of (Gains) Losses Reclassified from AOCI into Expense (Effective Portion) Derivatives Designated as Cash Flow Hedging Instruments Three Months Ended March 31, 2019 2018 (In thousands) Interest rate swaps $ (223 ) $ 345 The tables below present information pertaining to the Company’s derivatives in the Consolidated Statements of Net Income designated as hedging instruments for the three months ended March 31, 2019 and 2018 : Fair Value Hedges Amount of Gain Recognized in Income from Derivatives Derivatives Designated as Fair Value Location of Gain (Loss) Recognized in Income Three Months Ended March 31, 2019 2018 (In thousands) Interest rate swaps Interest income $ — $ 8 Amount of Gain Recognized in Income from Hedged Items Three Months Ended March 31, 2019 2018 (In thousands) Interest rate swaps Interest income $ — $ 9 The table below presents information pertaining to the Company’s derivatives not designated as hedging instruments in the Consolidated Statements of Net Income as of March 31, 2019 and 2018 : Amount of Gain (Loss) Recognized in Income Three Months Ended March 31, 2019 2018 (In thousands) Derivatives not designated as hedging instruments: Derivative loan commitments $ 15 $ (26 ) Interest rate swap 169 (194 ) Forward loan sale commitments 682 (5 ) Loan level swaps (1 ) 5 Forward starting loan level swaps (1 ) — $ 864 $ (220 ) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Activity Related to Stock Options | The following table presents the activity related to stock options outstanding, including options that have stock appreciation rights (“SARs”), under the Plans for the three months ended March 31, 2019 : Number of Weighted- Weighted-Average Aggregate Outstanding at December 31, 2018 1,386,712 $ 11.70 Granted — — Exercised (51,513 ) 9.09 Forfeited or expired — — Outstanding at March 31, 2019 1,335,199 $ 11.80 3.7 $ 3.4 Stock options vested and exercisable at March 31, 2019 1,326,475 $ 11.79 3.7 $ 3.4 |
Activity for Restricted Stock | The following table presents the activity for restricted stock for the three months ended March 31, 2019 : Number Weighted-Average Unvested as of December 31, 2018 474,508 $ 15.44 Granted — — Vested (55,485 ) 11.34 Forfeited (37,292 ) 13.19 Unvested as of March 31, 2019 381,731 $ 16.26 |
ESOP Shares | The ESOP shares as of the period indicated below were as follows: March 31, 2019 Allocated shares 1,243,678 Shares allocated for release 5,703 Unreleased shares 496,187 Total ESOP shares 1,745,568 Market value of unreleased shares (in thousands) $ 7,120 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Amounts and Ratios | The Company’s and the Bank’s actual capital amounts and ratios as of March 31, 2019 and December 31, 2018 are also presented in the following table: Actual Minimum For Minimum To Be Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) United Bank March 31, 2019 Total capital to risk weighted assets $ 689,517 11.70 % $ 471,465 8.00 % $ 589,331 10.00 % Common equity tier 1 capital to risk weighted assets 635,148 10.78 265,136 4.50 382,974 6.50 Tier 1 capital to risk weighted assets 635,148 10.78 353,515 6.00 471,353 8.00 Tier 1 capital to total average assets 635,148 8.77 289,691 4.00 362,114 5.00 December 31, 2018 Total capital to risk weighted assets $ 694,633 11.87 % $ 466,980 8.00 % $ 583,725 10.00 % Common equity tier 1 capital to risk weighted assets 640,773 10.95 264,539 4.50 382,112 6.50 Tier 1 capital to risk weighted assets 640,773 10.95 352,719 6.00 470,292 8.00 Tier 1 capital to total average assets 640,773 8.99 284,788 4.00 355,985 5.00 United Financial Bancorp, Inc. March 31, 2019 Total capital to risk weighted assets $ 739,571 12.52 % $ 472,569 8.00 % N/A N/A Common equity tier 1 capital to risk weighted assets 610,202 10.33 265,819 4.50 N/A N/A Tier 1 capital to risk weighted assets 610,202 10.33 354,425 6.00 N/A N/A Tier 1 capital to total average assets 610,202 8.43 289,538 4.00 N/A N/A December 31, 2018 Total capital to risk weighted assets $ 739,322 12.60 % $ 469,411 8.00 % N/A N/A Common equity tier 1 capital to risk weighted assets 610,462 10.40 264,142 4.50 N/A N/A Tier 1 capital to risk weighted assets 610,462 10.40 352,190 6.00 N/A N/A Tier 1 capital to total average assets 610,462 8.43 290,696 4.00 N/A N/A The following table provides, solely on an illustrative basis, the potential impact on capital if the Company were to recognize a complete loss on the LLC investments including total tax benefit recapture. The Company does not currently believe a complete loss to be likely. The total exposure reflected in the table does not include litigation exposure, potential costs, penalties, interest or recoveries. March 31, 2019 December 31, 2018 Actual Proforma (1) Actual United Financial Bancorp, Inc. Tangible Common Equity to Tangible Assets 10.33 % 7.80 % 8.15 % Tier 1 Capital Ratio 10.33 % 9.76 % 10.40 % Total Capital to Risk Weighted Assets Ratio 12.52 % 11.97 % 12.60 % Tier 1 to Total Average Assets Ratio 8.43 % 7.79 % 8.43 % United Bank Tier 1 Capital Ratio 10.78 % 10.72 % 10.95 % Total Capital to Risk Weighted Assets Ratio 11.70 % 11.66 % 11.87 % Tier 1 to Total Average Assets Ratio 8.77 % 8.68 % 8.99 % (1) Presented as estimates, within a range of +/- 5 bps. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss, Net of Taxes | The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: March 31, 2019 December 31, 2018 (In thousands) Benefit plans: Unrecognized net actuarial loss $ (7,720 ) $ (7,861 ) Tax effect 1,701 1,731 Benefit plans, net (6,019 ) (6,130 ) Securities available-for-sale: Net unrealized loss (8,215 ) (31,248 ) Tax effect 1,810 6,885 Securities available-for-sale, net (6,405 ) (24,363 ) Interest rate swaps: Net unrealized (loss) gain (4,695 ) 101 Tax effect 1,034 (22 ) Interest rate swaps, net (3,661 ) 79 $ (16,085 ) $ (30,414 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Share | The following table sets forth the calculation of basic and diluted net income per share for the three months ended March 31, 2019 and 2018 : For the Three Months 2019 2018 (In thousands, except share data) Net income available to common stockholders $ 12,657 $ 15,787 Weighted-average common shares outstanding 51,114,984 50,997,681 Less: average number of unallocated ESOP award shares (499,925 ) (522,739 ) Weighted-average basic shares outstanding 50,615,059 50,474,942 Dilutive effect of stock options 292,033 521,654 Weighted-average diluted shares 50,907,092 50,996,596 Net income per share: Basic $ 0.25 $ 0.31 Diluted $ 0.25 $ 0.31 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Gains (Losses) in Fair Value Related to Mortgage Loans Held for Sale | The following table presents the losses in fair value related to mortgage loans held for sale for the periods indicated: Three Months Ended 2019 2018 (In thousands) Mortgage loans held for sale $ (871 ) $ (1,257 ) |
Schedule of Assets and Liabilities Recorded at Fair Value on Recurring Basis | The following tables detail the assets and liabilities carried at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. There were no transfers in and out of Level 1, Level 2 and Level 3 measurements during the three months ended March 31, 2019 and 2018 . Total Quoted Prices Other Significant (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2019 Available-for-Sale Securities: Government-sponsored residential mortgage-backed securities $ 201,930 $ — $ 201,930 $ — Government-sponsored residential collateralized debt obligations 131,527 — 131,527 — Government-sponsored commercial mortgage-backed securities 28,404 — 28,404 — Government-sponsored commercial collateralized debt obligations 145,951 — 145,951 — Asset-backed securities 158,171 — — 158,171 Corporate debt securities 94,466 — 94,466 — Obligations of states and political subdivisions 88,092 — 88,092 — Total available-for-sale debt securities $ 848,541 $ — $ 690,370 $ 158,171 Mortgage loan derivative assets $ 210 $ — $ 210 $ — Loans held for sale 16,172 — 16,172 — Marketable equity securities 409 409 — — Mortgage servicing rights 14,691 — — 14,691 Interest rate swap assets 14,302 — 14,302 — Interest rate swap liabilities 19,522 — 19,522 — December 31, 2018 Available-for-Sale Securities: Government-sponsored residential mortgage-backed securities $ 204,098 $ — $ 204,098 $ — Government-sponsored residential collateralized-debt obligations 170,719 — 170,719 — Government-sponsored commercial mortgage-backed securities 27,678 — 27,678 — Government-sponsored commercial collateralized-debt obligations 148,226 — 148,226 — Asset-backed securities 100,495 — — 100,495 Corporate debt securities 83,230 — 83,230 — Obligations of states and political subdivisions 238,901 — 238,901 — Total available-for-sale securities $ 973,347 $ — $ 872,852 $ 100,495 Mortgage loan derivative assets $ 194 $ — $ 194 $ — Mortgage loan derivative liabilities 681 — 681 — Loans held for sale 78,788 — 78,788 — Marketable equity securities 356 356 — — Mortgage servicing rights 14,739 — — 14,739 Interest rate swap assets 13,329 — 13,329 — Interest rate swap liabilities 13,920 — 13,920 — |
Schedule of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs | The following table presents additional information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value: Three Months Ended 2019 2018 (In thousands) Balance of available-for-sale securities, at beginning of period $ 100,495 $ 167,139 Purchases (sales) 57,021 (55,706 ) Principal payments and net accretion (11 ) (77 ) Total realized gains (losses) included in earnings — (149 ) Total unrealized gains (losses) included in other comprehensive income/loss 666 (18 ) Balance at end of period $ 158,171 $ 111,189 Balance of mortgage servicing rights, at beginning of period $ 14,739 $ 11,733 Issuances 899 781 Change in fair value recognized in net income (947 ) 819 Balance at end of period $ 14,691 $ 13,333 |
Quantitative Information of Assets Measured at Fair Value on a Recurring Basis | The following table presents additional quantitative information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value at March 31, 2019 : (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Asset-backed securities $ 158,171 Discounted Cash Flow Discount Rates 3.5% - 6.5% (4.43%) Cumulative Default % 0.2% - 14.1% (9.08%) Loss Given Default 0.1% - 4.6% (2.79%) Mortgage servicing rights $ 14,691 Discounted Cash Flow Discount Rate 11.0% - 15.5% (12.83%) Cost to Service $75 - $135 ($88.08) Float Earnings Rate 1.50% (1.50%) |
Summary of Assets Recorded at Fair Value on Non-Recurring Basis | The following tables detail the assets carried at fair value on a non-recurring basis at March 31, 2019 and December 31, 2018 and indicate the fair value hierarchy of the valuation technique utilized by the Company to determine fair value. There were no liabilities measured at fair value on a non-recurring basis at March 31, 2019 and December 31, 2018 . Total Quoted Prices in Other Significant (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2019 Impaired loans $ 494 $ — $ — $ 494 Other real estate owned 1,429 — — 1,429 Total $ 1,923 $ — $ — $ 1,923 December 31, 2018 Impaired loans $ 2,847 $ — $ — $ 2,847 Other real estate owned 1,389 — — 1,389 Total $ 4,236 $ — $ — $ 4,236 |
Summary of Gains (Losses) on Assets Recorded at Fair Value on Non-Recurring Basis | Losses on assets recorded at fair value on a non-recurring basis for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended 2019 2018 (In thousands) Impaired loans $ (27 ) $ (100 ) Other real estate owned (22 ) (50 ) Total $ (49 ) $ (150 ) |
Summary of Carrying Value and Estimated Fair Values of Financial Instruments | As of March 31, 2019 and December 31, 2018 , the carrying value and estimated fair values of the Company’s financial instruments are as described below: Carrying Fair Value Level 1 Level 2 Level 3 Total (In thousands) March 31, 2019 Financial assets: Cash and cash equivalents $ 155,173 $ 155,173 $ — $ — $ 155,173 Available-for-sale securities 848,541 — 690,370 158,171 848,541 Loans held for sale 16,172 — 16,172 — 16,172 Loans receivable-net 5,697,442 — — 5,611,760 5,611,760 FHLBB stock 37,702 — — 37,702 37,702 Accrued interest receivable 25,061 — — 25,061 25,061 Derivative assets 14,512 — 14,512 — 14,512 Mortgage servicing rights 14,691 — — 14,691 14,691 Marketable equity securities 409 409 — — 409 Financial liabilities: Deposits 5,664,252 — — 5,660,505 5,660,505 Mortgagors’ and investors’ escrow accounts 11,510 — — 11,510 11,510 FHLBB advances and other borrowings 826,668 — 827,451 — 827,451 Derivative liabilities 19,522 — 19,522 — 19,522 December 31, 2018 Financial assets: Cash and cash equivalents $ 97,964 $ 97,964 $ — $ — $ 97,964 Available-for-sale securities 973,347 — 872,852 100,495 973,347 Loans held for sale 78,788 — 78,788 — 78,788 Loans receivable-net 5,622,589 — — 5,533,626 5,533,626 FHLBB stock 41,407 — — 41,407 41,407 Accrued interest receivable 24,823 — — 24,823 24,823 Derivative assets 13,523 — 13,523 — 13,523 Mortgage servicing rights 14,739 — — 14,739 14,739 Marketable equity securities 356 356 — — 356 Financial liabilities: Deposits 5,670,599 — — 5,661,129 5,661,129 Mortgagors’ and investors’ escrow accounts 4,685 — — 4,685 4,685 FHLBB advances and other borrowings 899,626 — 900,146 — 900,146 Derivative liabilities 14,601 — 14,601 — 14,601 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments Contract Amounts Represent Credit Risk | Off-balance sheet financial instruments whose contract amounts represent credit risk are as follows at March 31, 2019 and December 31, 2018 : March 31, December 31, (In thousands) Commitments to extend credit: Commitment to grant loans $ 146,342 $ 140,875 Undisbursed construction loans 145,918 122,838 Undisbursed home equity lines of credit 461,316 453,634 Undisbursed commercial lines of credit 619,575 515,193 Standby letters of credit 17,567 13,252 Unused credit card lines 21,468 21,331 Unused checking overdraft lines of credit 2,431 2,322 Total $ 1,414,617 $ 1,269,445 |
Investment in D.C. Solar Tax-_2
Investment in D.C. Solar Tax-Advantaged Funds (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Regulatory Capital Amounts and Ratios | The Company’s and the Bank’s actual capital amounts and ratios as of March 31, 2019 and December 31, 2018 are also presented in the following table: Actual Minimum For Minimum To Be Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) United Bank March 31, 2019 Total capital to risk weighted assets $ 689,517 11.70 % $ 471,465 8.00 % $ 589,331 10.00 % Common equity tier 1 capital to risk weighted assets 635,148 10.78 265,136 4.50 382,974 6.50 Tier 1 capital to risk weighted assets 635,148 10.78 353,515 6.00 471,353 8.00 Tier 1 capital to total average assets 635,148 8.77 289,691 4.00 362,114 5.00 December 31, 2018 Total capital to risk weighted assets $ 694,633 11.87 % $ 466,980 8.00 % $ 583,725 10.00 % Common equity tier 1 capital to risk weighted assets 640,773 10.95 264,539 4.50 382,112 6.50 Tier 1 capital to risk weighted assets 640,773 10.95 352,719 6.00 470,292 8.00 Tier 1 capital to total average assets 640,773 8.99 284,788 4.00 355,985 5.00 United Financial Bancorp, Inc. March 31, 2019 Total capital to risk weighted assets $ 739,571 12.52 % $ 472,569 8.00 % N/A N/A Common equity tier 1 capital to risk weighted assets 610,202 10.33 265,819 4.50 N/A N/A Tier 1 capital to risk weighted assets 610,202 10.33 354,425 6.00 N/A N/A Tier 1 capital to total average assets 610,202 8.43 289,538 4.00 N/A N/A December 31, 2018 Total capital to risk weighted assets $ 739,322 12.60 % $ 469,411 8.00 % N/A N/A Common equity tier 1 capital to risk weighted assets 610,462 10.40 264,142 4.50 N/A N/A Tier 1 capital to risk weighted assets 610,462 10.40 352,190 6.00 N/A N/A Tier 1 capital to total average assets 610,462 8.43 290,696 4.00 N/A N/A The following table provides, solely on an illustrative basis, the potential impact on capital if the Company were to recognize a complete loss on the LLC investments including total tax benefit recapture. The Company does not currently believe a complete loss to be likely. The total exposure reflected in the table does not include litigation exposure, potential costs, penalties, interest or recoveries. March 31, 2019 December 31, 2018 Actual Proforma (1) Actual United Financial Bancorp, Inc. Tangible Common Equity to Tangible Assets 10.33 % 7.80 % 8.15 % Tier 1 Capital Ratio 10.33 % 9.76 % 10.40 % Total Capital to Risk Weighted Assets Ratio 12.52 % 11.97 % 12.60 % Tier 1 to Total Average Assets Ratio 8.43 % 7.79 % 8.43 % United Bank Tier 1 Capital Ratio 10.78 % 10.72 % 10.95 % Total Capital to Risk Weighted Assets Ratio 11.70 % 11.66 % 11.87 % Tier 1 to Total Average Assets Ratio 8.77 % 8.68 % 8.99 % (1) Presented as estimates, within a range of +/- 5 bps. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019atmoffice | |
Accounting Policies [Abstract] | |
Number of banking offices | office | 59 |
Number of ATMs | atm | 72 |
Securities - Available for Sale
Securities - Available for Sale and Held to Maturity Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Amortized Cost | $ 856,756 | $ 1,004,595 |
Gross Unrealized Gains | 2,125 | 758 |
Gross Unrealized Losses | (10,340) | (32,006) |
Fair Value | 848,541 | 973,347 |
Government-sponsored residential mortgage-backed securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Amortized Cost | 202,586 | 208,916 |
Gross Unrealized Gains | 506 | 0 |
Gross Unrealized Losses | (1,162) | (4,818) |
Fair Value | 201,930 | 204,098 |
Government-sponsored residential collateralized debt obligations | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Amortized Cost | 131,755 | 172,468 |
Gross Unrealized Gains | 275 | 270 |
Gross Unrealized Losses | (503) | (2,019) |
Fair Value | 131,527 | 170,719 |
Government-sponsored commercial mortgage-backed securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Amortized Cost | 28,617 | 28,694 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (213) | (1,016) |
Fair Value | 28,404 | 27,678 |
Government-sponsored commercial collateralized debt obligations | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Amortized Cost | 151,545 | 155,091 |
Gross Unrealized Gains | 94 | 0 |
Gross Unrealized Losses | (5,688) | (6,865) |
Fair Value | 145,951 | 148,226 |
Asset-backed securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Amortized Cost | 159,382 | 102,371 |
Gross Unrealized Gains | 240 | 15 |
Gross Unrealized Losses | (1,451) | (1,891) |
Fair Value | 158,171 | 100,495 |
Corporate debt securities | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Amortized Cost | 94,959 | 86,462 |
Gross Unrealized Gains | 276 | 48 |
Gross Unrealized Losses | (769) | (3,280) |
Fair Value | 94,466 | 83,230 |
Obligations of states and political subdivisions | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Amortized Cost | 87,912 | 250,593 |
Gross Unrealized Gains | 734 | 425 |
Gross Unrealized Losses | (554) | (12,117) |
Fair Value | $ 88,092 | $ 238,901 |
Securities - Additional Informa
Securities - Additional Information (Detail) | 3 Months Ended | ||||
Mar. 31, 2019USD ($)issue | Mar. 31, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($)issue | Jan. 01, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net unrealized loss on securities | $ 8,200,000 | ||||
Income tax benefit | 1,800,000 | ||||
Accumulated other comprehensive loss | 6,400,000 | ||||
Increase (decrease) to retained earnings | 203,156,000 | $ 206,761,000 | |||
(Decrease) increase to accumulated other comprehensive income | 16,085,000 | 30,414,000 | |||
Realized gains | 53,000 | $ 24,000 | |||
Fair value, marketable equity securities | 409,000 | 356,000 | |||
Securities pledged as derivative collateral | 369,600,000 | $ 438,800,000 | |||
Gross gains realized on the sale of available-for-sale securities | 2,900,000 | ||||
Gross gains realized on the sale of available-for-sale securities | 347,000 | ||||
Gross losses realized on the sale of available-for-sale securities | 2,100,000 | ||||
Gross losses realized on the sale of available-for-sale securities | $ 200,000 | ||||
Fair value of obligations of states and political subdivisions | 88,100,000 | ||||
General obligation bonds | 38,100,000 | ||||
Obligations of political subdivisions | $ 24,600,000 | ||||
Available-for-sale securities with unrealized losses, less than twelve months | issue | 25 | 95 | |||
Percentage of continuous unrealized losses to amortized cost basis for less than twelve months | 1.10% | 2.10% | |||
Securities with unrealized losses for twelve months or more | issue | 97 | 155 | |||
Percentage of continuous unrealized losses to amortized cost basis for twelve months or more | 2.10% | 4.30% | |||
Other-than-temporary impairment | $ 0 | ||||
ASU 2016-01 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase (decrease) to retained earnings | $ 177,000 | ||||
(Decrease) increase to accumulated other comprehensive income | $ 177,000 | ||||
ASU 2017-08 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase (decrease) to retained earnings | $ (10,200,000) | ||||
(Decrease) increase to accumulated other comprehensive income | $ (10,200,000) |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Debt Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Within 1 year | $ 0 | |
After 1 year through 5 years | 10,747 | |
After 5 years through 10 years | 87,345 | |
After 10 years | 84,779 | |
Single maturity date | 182,871 | |
Amortized Cost | 856,756 | $ 1,004,595 |
Fair Value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 10,820 | |
After 5 years through 10 years | 86,743 | |
After 10 years | 84,995 | |
Single maturity date | 182,558 | |
Fair Value | 848,541 | 973,347 |
Government-sponsored residential mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 202,586 | |
Amortized Cost | 202,586 | 208,916 |
Fair Value | ||
Without single maturity date | 201,930 | |
Fair Value | 201,930 | 204,098 |
Government-sponsored residential collateralized debt obligations | ||
Amortized Cost | ||
Without single maturity date | 131,755 | |
Amortized Cost | 131,755 | 172,468 |
Fair Value | ||
Without single maturity date | 131,527 | |
Fair Value | 131,527 | 170,719 |
Government-sponsored commercial mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 28,617 | |
Amortized Cost | 28,617 | 28,694 |
Fair Value | ||
Without single maturity date | 28,404 | |
Fair Value | 28,404 | 27,678 |
Government-sponsored commercial collateralized debt obligations | ||
Amortized Cost | ||
Without single maturity date | 151,545 | |
Amortized Cost | 151,545 | 155,091 |
Fair Value | ||
Without single maturity date | 145,951 | |
Fair Value | 145,951 | 148,226 |
Asset-backed securities | ||
Amortized Cost | ||
Without single maturity date | 159,382 | |
Amortized Cost | 159,382 | 102,371 |
Fair Value | ||
Without single maturity date | 158,171 | |
Fair Value | $ 158,171 | $ 100,495 |
Securities - Summary of Gross U
Securities - Summary of Gross Unrealized Losses and Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less Than 12 Months | $ 82,445 | $ 314,207 |
12 Months or More | 449,066 | 568,133 |
Total | 531,511 | 882,340 |
Unrealized Loss | ||
Less Than 12 Months | (906) | (6,690) |
12 Months or More | (9,434) | (25,316) |
Total | (10,340) | (32,006) |
Government-sponsored residential mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months | 0 | 97,634 |
12 Months or More | 123,622 | 106,464 |
Total | 123,622 | 204,098 |
Unrealized Loss | ||
Less Than 12 Months | 0 | (1,590) |
12 Months or More | (1,162) | (3,228) |
Total | (1,162) | (4,818) |
Government-sponsored residential collateralized debt obligations | ||
Fair Value | ||
Less Than 12 Months | 0 | 5,093 |
12 Months or More | 63,316 | 107,291 |
Total | 63,316 | 112,384 |
Unrealized Loss | ||
Less Than 12 Months | 0 | (54) |
12 Months or More | (503) | (1,965) |
Total | (503) | (2,019) |
Government-sponsored commercial mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | 28,404 | 27,678 |
Total | 28,404 | 27,678 |
Unrealized Loss | ||
Less Than 12 Months | 0 | 0 |
12 Months or More | (213) | (1,016) |
Total | (213) | (1,016) |
Government-sponsored commercial collateralized debt obligations | ||
Fair Value | ||
Less Than 12 Months | 0 | 15,787 |
12 Months or More | 138,443 | 132,439 |
Total | 138,443 | 148,226 |
Unrealized Loss | ||
Less Than 12 Months | 0 | (176) |
12 Months or More | (5,688) | (6,689) |
Total | (5,688) | (6,865) |
Asset-backed securities | ||
Fair Value | ||
Less Than 12 Months | 77,129 | 62,444 |
12 Months or More | 26,495 | 23,426 |
Total | 103,624 | 85,870 |
Unrealized Loss | ||
Less Than 12 Months | (848) | (1,272) |
12 Months or More | (603) | (619) |
Total | (1,451) | (1,891) |
Corporate debt securities | ||
Fair Value | ||
Less Than 12 Months | 4,460 | 43,937 |
12 Months or More | 39,222 | 33,245 |
Total | 43,682 | 77,182 |
Unrealized Loss | ||
Less Than 12 Months | (55) | (1,394) |
12 Months or More | (714) | (1,886) |
Total | (769) | (3,280) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 856 | 89,312 |
12 Months or More | 29,564 | 137,590 |
Total | 30,420 | 226,902 |
Unrealized Loss | ||
Less Than 12 Months | (3) | (2,204) |
12 Months or More | (551) | (9,913) |
Total | $ (554) | $ (12,117) |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses - Summary of Company's Loan Portfolio (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 5,731,582 | $ 5,656,439 | ||
Net deferred loan costs and premiums | 17,901 | 17,786 | ||
Allowance for loan losses | (52,041) | (51,636) | $ (47,915) | $ (47,099) |
Loans - net | $ 5,697,442 | $ 5,622,589 | ||
Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 100.00% | 100.00% | ||
Commercial real estate loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 2,466,152 | $ 2,441,961 | ||
Commercial real estate loans | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 43.00% | 43.10% | ||
Commercial real estate loans | Owner-occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 439,366 | $ 443,398 | ||
Allowance for loan losses | $ (4,148) | $ (4,459) | (3,927) | (3,754) |
Commercial real estate loans | Owner-occupied | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 7.70% | 7.80% | ||
Commercial real estate loans | Investor non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 1,932,137 | $ 1,911,070 | ||
Allowance for loan losses | $ (17,677) | $ (17,011) | (15,983) | (15,916) |
Commercial real estate loans | Investor non-owner occupied | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 33.70% | 33.80% | ||
Commercial real estate loans | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 94,649 | $ 87,493 | ||
Commercial real estate loans | Construction | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 1.60% | 1.50% | ||
Commercial business loans | Commercial business loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 920,165 | $ 886,770 | ||
Allowance for loan losses | $ (11,010) | $ (10,961) | (10,981) | (10,608) |
Commercial business loans | Commercial business loans | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 16.10% | 15.70% | ||
Consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 2,345,265 | $ 2,327,708 | ||
Consumer loans | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 40.90% | 41.20% | ||
Consumer loans | Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 1,322,423 | $ 1,313,373 | ||
Allowance for loan losses | $ (7,825) | $ (7,971) | (7,785) | (7,694) |
Consumer loans | Residential real estate | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 23.10% | 23.20% | ||
Consumer loans | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 583,368 | $ 583,454 | ||
Allowance for loan losses | $ (3,348) | $ (3,220) | (3,217) | (3,258) |
Consumer loans | Home equity | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 10.20% | 10.30% | ||
Consumer loans | Residential construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 13,620 | $ 20,632 | ||
Consumer loans | Residential construction | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 0.20% | 0.40% | ||
Consumer loans | Other consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 425,854 | $ 410,249 | ||
Allowance for loan losses | $ (4,360) | $ (4,381) | $ (2,544) | $ (2,523) |
Consumer loans | Other consumer | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent | 7.40% | 7.30% |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses - Additional Information (Detail) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019USD ($)grade | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total allowance for loan losses | $ 52,041 | $ 47,915 | $ 51,636 | $ 47,099 |
Percentage allowance for loan losses in total loan | 0.91% | 0.91% | ||
Number of quarters of historical loss used in capturing relevant loss data for loan segments | 36 months | |||
Number of grades in internal loan rating system | grade | 9 | |||
Evaluation period | 3 years | |||
Aggregate principal balance of loans serviced for third parties | $ 1,530,000 | $ 1,470,000 | ||
Consumer loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Recognition period of losses on open and closed end consumer loans | 120 days | |||
Minimum | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Internal rates of return used for determination of fair value | 11.80% | |||
Average prepayment speed | 201 | |||
Maximum | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Period after which loans are evaluated for impairment, residential and installment and collateral loans | 90 days | |||
Internal rates of return used for determination of fair value | 13.80% | |||
Average prepayment speed | 150 | |||
Maximum | Residential Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Period within which an updated appraisal is obtained after loan is determined to be impaired, residential property | 30 days | |||
Maximum | Commercial Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Period within which an updated appraisal is obtained after loan is determined to be impaired, commercial real estate property | 90 days | |||
Serving income | Loan Servicing | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Servicing fee income | $ 793,000,000 | $ 720 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses - Company's Loans by Risk Rating (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 5,731,582 | $ 5,656,439 |
Commercial real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,466,152 | 2,441,961 |
Commercial real estate loans | Owner-Occupied CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 439,366 | 443,398 |
Commercial real estate loans | Owner-Occupied CRE | Loans rated 1-5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 406,900 | 410,403 |
Commercial real estate loans | Owner-Occupied CRE | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,664 | 17,134 |
Commercial real estate loans | Owner-Occupied CRE | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 14,802 | 15,861 |
Commercial real estate loans | Owner-Occupied CRE | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate loans | Owner-Occupied CRE | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate loans | Investor CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,932,137 | 1,911,070 |
Commercial real estate loans | Investor CRE | Loans rated 1-5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,904,846 | 1,884,767 |
Commercial real estate loans | Investor CRE | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,100 | 6,544 |
Commercial real estate loans | Investor CRE | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 18,191 | 19,759 |
Commercial real estate loans | Investor CRE | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate loans | Investor CRE | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate and consumer | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 108,269 | 108,125 |
Commercial real estate and consumer | Construction | Loans rated 1-5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 105,466 | 104,848 |
Commercial real estate and consumer | Construction | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,068 | 1,994 |
Commercial real estate and consumer | Construction | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 735 | 1,283 |
Commercial real estate and consumer | Construction | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate and consumer | Construction | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial business loans | Commercial Business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 920,165 | 886,770 |
Commercial business loans | Commercial Business | Loans rated 1-5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 874,939 | 844,541 |
Commercial business loans | Commercial Business | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 31,337 | 28,385 |
Commercial business loans | Commercial Business | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,889 | 13,844 |
Commercial business loans | Commercial Business | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial business loans | Commercial Business | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,345,265 | 2,327,708 |
Consumer loans | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,322,423 | 1,313,373 |
Consumer loans | Residential Real Estate | Loans rated 1-5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,302,651 | 1,294,623 |
Consumer loans | Residential Real Estate | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,644 | 2,429 |
Consumer loans | Residential Real Estate | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,128 | 16,321 |
Consumer loans | Residential Real Estate | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Residential Real Estate | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 583,368 | 583,454 |
Consumer loans | Home Equity | Loans rated 1-5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 576,626 | 576,509 |
Consumer loans | Home Equity | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 916 | 740 |
Consumer loans | Home Equity | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,826 | 6,205 |
Consumer loans | Home Equity | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Home Equity | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Other Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 425,854 | 410,249 |
Consumer loans | Other Consumer | Loans rated 1-5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 423,539 | 407,935 |
Consumer loans | Other Consumer | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Other Consumer | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,315 | 2,314 |
Consumer loans | Other Consumer | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Other Consumer | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Activity in the Allowance for Loan Losses | ||
Balance, beginning of period | $ 51,636 | $ 47,099 |
Provision for loan losses | 2,043 | 1,939 |
Loans charged off | (2,062) | (1,693) |
Recoveries of loans previously charged off | 424 | 570 |
Balance, end of period | 52,041 | 47,915 |
Commercial real estate loans | Owner-Occupied CRE | ||
Activity in the Allowance for Loan Losses | ||
Balance, beginning of period | 4,459 | 3,754 |
Provision for loan losses | (311) | 173 |
Loans charged off | 0 | 0 |
Recoveries of loans previously charged off | 0 | 0 |
Balance, end of period | 4,148 | 3,927 |
Commercial real estate loans | Investor CRE | ||
Activity in the Allowance for Loan Losses | ||
Balance, beginning of period | 17,011 | 15,916 |
Provision for loan losses | 661 | 94 |
Loans charged off | 0 | (64) |
Recoveries of loans previously charged off | 5 | 37 |
Balance, end of period | 17,677 | 15,983 |
Commercial real estate and consumer | Construction | ||
Activity in the Allowance for Loan Losses | ||
Balance, beginning of period | 1,653 | 1,601 |
Provision for loan losses | 69 | 53 |
Loans charged off | (149) | (21) |
Recoveries of loans previously charged off | 0 | 0 |
Balance, end of period | 1,573 | 1,633 |
Commercial business loans | Commercial Business | ||
Activity in the Allowance for Loan Losses | ||
Balance, beginning of period | 10,961 | 10,608 |
Provision for loan losses | 507 | 796 |
Loans charged off | (518) | (653) |
Recoveries of loans previously charged off | 60 | 230 |
Balance, end of period | 11,010 | 10,981 |
Consumer loans | Residential Real Estate | ||
Activity in the Allowance for Loan Losses | ||
Balance, beginning of period | 7,971 | 7,694 |
Provision for loan losses | (135) | 203 |
Loans charged off | (108) | (181) |
Recoveries of loans previously charged off | 97 | 69 |
Balance, end of period | 7,825 | 7,785 |
Consumer loans | Home Equity | ||
Activity in the Allowance for Loan Losses | ||
Balance, beginning of period | 3,220 | 3,258 |
Provision for loan losses | 455 | 252 |
Loans charged off | (349) | (349) |
Recoveries of loans previously charged off | 22 | 56 |
Balance, end of period | 3,348 | 3,217 |
Consumer loans | Other Consumer | ||
Activity in the Allowance for Loan Losses | ||
Balance, beginning of period | 4,381 | 2,523 |
Provision for loan losses | 677 | 268 |
Loans charged off | (938) | (425) |
Recoveries of loans previously charged off | 240 | 178 |
Balance, end of period | 4,360 | 2,544 |
Unallocated | ||
Activity in the Allowance for Loan Losses | ||
Balance, beginning of period | 1,980 | 1,745 |
Provision for loan losses | 120 | 100 |
Loans charged off | 0 | 0 |
Recoveries of loans previously charged off | 0 | 0 |
Balance, end of period | $ 2,100 | $ 1,845 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses - Summary of Allowance for Loan Losses and Impaired Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | $ 373 | $ 570 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 51,668 | 51,066 | ||
Total allowance for loan losses | 52,041 | 51,636 | $ 47,915 | $ 47,099 |
Loans deemed impaired | 48,467 | 45,884 | ||
Loans not deemed impaired | 5,680,043 | 5,607,294 | ||
Total loans | 5,731,582 | 5,656,439 | ||
Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 3,072 | 3,261 | ||
Commercial real estate loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 2,466,152 | 2,441,961 | ||
Commercial real estate loans | Owner-Occupied CRE | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 0 | 0 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 4,148 | 4,459 | ||
Total allowance for loan losses | 4,148 | 4,459 | 3,927 | 3,754 |
Loans deemed impaired | 2,402 | 3,034 | ||
Loans not deemed impaired | 436,964 | 440,364 | ||
Total loans | 439,366 | 443,398 | ||
Commercial real estate loans | Investor CRE | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 0 | 0 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 17,677 | 17,011 | ||
Total allowance for loan losses | 17,677 | 17,011 | 15,983 | 15,916 |
Loans deemed impaired | 6,491 | 6,895 | ||
Loans not deemed impaired | 1,925,485 | 1,903,998 | ||
Total loans | 1,932,137 | 1,911,070 | ||
Commercial real estate loans | Loans acquired with deteriorated credit quality | Owner-Occupied CRE | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Commercial real estate loans | Loans acquired with deteriorated credit quality | Investor CRE | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 161 | 177 | ||
Commercial real estate and consumer | Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 34 | 92 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 1,539 | 1,561 | ||
Total allowance for loan losses | 1,573 | 1,653 | 1,633 | 1,601 |
Loans deemed impaired | 869 | 1,047 | ||
Loans not deemed impaired | 107,400 | 107,078 | ||
Total loans | 108,269 | 108,125 | ||
Commercial real estate and consumer | Loans acquired with deteriorated credit quality | Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Commercial business loans | Commercial Business | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 0 | 114 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 11,010 | 10,847 | ||
Total allowance for loan losses | 11,010 | 10,961 | 10,981 | 10,608 |
Loans deemed impaired | 8,806 | 5,219 | ||
Loans not deemed impaired | 911,359 | 881,551 | ||
Total loans | 920,165 | 886,770 | ||
Commercial business loans | Loans acquired with deteriorated credit quality | Commercial Business | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Consumer loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 2,345,265 | 2,327,708 | ||
Consumer loans | Residential Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 72 | 120 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 7,753 | 7,851 | ||
Total allowance for loan losses | 7,825 | 7,971 | 7,785 | 7,694 |
Loans deemed impaired | 20,583 | 20,114 | ||
Loans not deemed impaired | 1,300,001 | 1,291,255 | ||
Total loans | 1,322,423 | 1,313,373 | ||
Consumer loans | Home Equity | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 31 | 1 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 3,317 | 3,219 | ||
Total allowance for loan losses | 3,348 | 3,220 | 3,217 | 3,258 |
Loans deemed impaired | 8,002 | 8,257 | ||
Loans not deemed impaired | 575,366 | 575,197 | ||
Total loans | 583,368 | 583,454 | ||
Consumer loans | Other Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 236 | 243 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 4,124 | 4,138 | ||
Total allowance for loan losses | 4,360 | 4,381 | 2,544 | 2,523 |
Loans deemed impaired | 1,314 | 1,318 | ||
Loans not deemed impaired | 423,468 | 407,851 | ||
Total loans | 425,854 | 410,249 | ||
Consumer loans | Loans acquired with deteriorated credit quality | Residential Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 1,839 | 2,004 | ||
Consumer loans | Loans acquired with deteriorated credit quality | Home Equity | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Consumer loans | Loans acquired with deteriorated credit quality | Other Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 1,072 | 1,080 | ||
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 0 | 0 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 2,100 | 1,980 | ||
Total allowance for loan losses | 2,100 | 1,980 | $ 1,845 | $ 1,745 |
Loans deemed impaired | ||||
Loans not deemed impaired |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses - Summary of Past Due and Non-Accrual Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 38,824 | $ 50,510 |
Past Due 90 Days or More and Still Accruing | 4,233 | 3,545 |
Loans on Non-accrual | 29,199 | 30,677 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13,362 | 22,672 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,862 | 8,034 |
Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 19,600 | 19,804 |
Commercial real estate loans | Owner-occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,160 | 2,104 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Loans on Non-accrual | 1,880 | 2,503 |
Commercial real estate loans | Owner-occupied | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 172 | 1,745 |
Commercial real estate loans | Owner-occupied | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 210 | 7 |
Commercial real estate loans | Owner-occupied | Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 778 | 352 |
Commercial real estate loans | Investor CRE | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,326 | 1,943 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Loans on Non-accrual | 739 | 1,131 |
Commercial real estate loans | Investor CRE | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,725 | 1,306 |
Commercial real estate loans | Investor CRE | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 601 | 91 |
Commercial real estate loans | Investor CRE | Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 546 |
Commercial real estate and consumer | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 736 | 1,244 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Loans on Non-accrual | 736 | 913 |
Commercial real estate and consumer | Construction | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 331 |
Commercial real estate and consumer | Construction | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate and consumer | Construction | Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 736 | 913 |
Commercial business loans | Commercial business loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,620 | 9,840 |
Past Due 90 Days or More and Still Accruing | 2,130 | 1,387 |
Loans on Non-accrual | 2,500 | 2,481 |
Commercial business loans | Commercial business loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,505 | 5,455 |
Commercial business loans | Commercial business loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 986 | 1,582 |
Commercial business loans | Commercial business loans | Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,129 | 2,803 |
Consumer loans | Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15,267 | 25,878 |
Past Due 90 Days or More and Still Accruing | 1,839 | 2,004 |
Loans on Non-accrual | 16,304 | 16,214 |
Consumer loans | Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,390 | 11,214 |
Consumer loans | Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,724 | 5,216 |
Consumer loans | Residential real estate | Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9,153 | 9,448 |
Consumer loans | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,109 | 6,626 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Loans on Non-accrual | 5,800 | 6,192 |
Consumer loans | Home equity | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,732 | 1,498 |
Consumer loans | Home equity | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,062 | 779 |
Consumer loans | Home equity | Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,315 | 4,349 |
Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,606 | 2,875 |
Past Due 90 Days or More and Still Accruing | 264 | 154 |
Loans on Non-accrual | 1,240 | 1,243 |
Consumer loans | Other consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 838 | 1,123 |
Consumer loans | Other consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 279 | 359 |
Consumer loans | Other consumer | Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 1,489 | $ 1,393 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses - Summary of Impaired Loans with and without Valuation Allowance (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, Impaired loans without a valuation allowance | $ 45,244 | $ 42,468 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 52,316 | 49,600 |
Recorded Investment, Impaired loans with a valuation allowance | 3,223 | 3,416 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 3,386 | 3,879 |
Allowance related to loans individually evaluated and deemed impaired | 373 | 570 |
Recorded Investment, Total impaired loans | 48,467 | 45,884 |
Unpaid Principal Balance, Total impaired loans | 55,702 | 53,479 |
Commercial real estate loans | Owner-occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, Impaired loans without a valuation allowance | 2,402 | 3,034 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 2,790 | 3,422 |
Allowance related to loans individually evaluated and deemed impaired | 0 | 0 |
Recorded Investment, Total impaired loans | 2,402 | 3,034 |
Commercial real estate loans | Investor CRE | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, Impaired loans without a valuation allowance | 6,491 | 6,895 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 6,760 | 7,153 |
Allowance related to loans individually evaluated and deemed impaired | 0 | 0 |
Recorded Investment, Total impaired loans | 6,491 | 6,895 |
Commercial real estate and consumer | Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, Impaired loans without a valuation allowance | 698 | 333 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 1,270 | 1,339 |
Recorded Investment, Impaired loans with a valuation allowance | 171 | 714 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 171 | 965 |
Allowance related to loans individually evaluated and deemed impaired | 34 | 92 |
Recorded Investment, Total impaired loans | 869 | 1,047 |
Commercial business loans | Commercial business loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, Impaired loans without a valuation allowance | 8,806 | 5,105 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 11,180 | 7,325 |
Recorded Investment, Impaired loans with a valuation allowance | 0 | 114 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 0 | 122 |
Allowance related to loans individually evaluated and deemed impaired | 0 | 114 |
Recorded Investment, Total impaired loans | 8,806 | 5,219 |
Consumer loans | Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, Impaired loans without a valuation allowance | 18,419 | 18,244 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 20,275 | 20,153 |
Recorded Investment, Impaired loans with a valuation allowance | 2,164 | 1,870 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 2,246 | 2,069 |
Allowance related to loans individually evaluated and deemed impaired | 72 | 120 |
Recorded Investment, Total impaired loans | 20,583 | 20,114 |
Consumer loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, Impaired loans without a valuation allowance | 7,707 | 8,132 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 9,319 | 9,483 |
Recorded Investment, Impaired loans with a valuation allowance | 295 | 125 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 376 | 130 |
Allowance related to loans individually evaluated and deemed impaired | 31 | 1 |
Recorded Investment, Total impaired loans | 8,002 | 8,257 |
Consumer loans | Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, Impaired loans without a valuation allowance | 721 | 725 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 722 | 725 |
Recorded Investment, Impaired loans with a valuation allowance | 593 | 593 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 593 | 593 |
Allowance related to loans individually evaluated and deemed impaired | 236 | 243 |
Recorded Investment, Total impaired loans | $ 1,314 | $ 1,318 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses - Average Recorded Investment in Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | $ 47,177 | $ 46,619 |
Interest Income Recognized | 417 | 488 |
Commercial real estate loans | Owner-occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 2,718 | 2,624 |
Interest Income Recognized | 24 | 32 |
Commercial real estate loans | Investor CRE | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 6,693 | 8,859 |
Interest Income Recognized | 76 | 109 |
Commercial real estate and consumer | Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 958 | 1,874 |
Interest Income Recognized | 1 | 10 |
Commercial business loans | Commercial business loans | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 7,013 | 5,194 |
Interest Income Recognized | 39 | 52 |
Consumer loans | Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 20,349 | 19,251 |
Interest Income Recognized | 245 | 207 |
Consumer loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 8,130 | 8,427 |
Interest Income Recognized | 31 | 78 |
Consumer loans | Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 1,316 | 390 |
Interest Income Recognized | $ 1 | $ 0 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Recorded investment in TDRs: | ||
Non-accrual status | $ 29,199 | $ 30,677 |
Troubled Debt Restructurings | ||
Recorded investment in TDRs: | ||
Accrual status | 19,267 | 15,208 |
Non-accrual status | 5,479 | 6,971 |
Total recorded investment in TDRs | 24,746 | 22,179 |
Accruing TDRs performing under modified terms more than one year | 12,792 | 12,609 |
Specific reserves for TDRs included in the balance of allowance for loan losses | 103 | 213 |
Additional funds committed to borrowers in TDR status | $ 0 | $ 7 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Loan Losses - Loans Restructured as Troubled Debt Restructurings (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)contract | Mar. 31, 2018USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 6 | 9 |
Pre-Modification Outstanding Recorded Investment | $ 3,941 | $ 4,146 |
Post-Modification Outstanding Recorded Investment | $ 3,941 | $ 4,146 |
Commercial real estate and consumer | Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 965 | |
Post-Modification Outstanding Recorded Investment | $ 965 | |
Commercial business loans | Commercial business | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 5 | |
Pre-Modification Outstanding Recorded Investment | $ 3,512 | |
Post-Modification Outstanding Recorded Investment | $ 3,512 | |
Consumer loans | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 429 | $ 2,861 |
Post-Modification Outstanding Recorded Investment | $ 429 | $ 2,861 |
Consumer loans | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 4 | |
Pre-Modification Outstanding Recorded Investment | $ 320 | |
Post-Modification Outstanding Recorded Investment | $ 320 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Loan Losses - Summary of How Loans were Modified as TDRs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | $ 3,941 | $ 4,146 |
Commercial real estate and consumer | Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 965 | |
Commercial business loans | Commercial business | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 3,512 | |
Consumer loans | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 429 | 2,861 |
Consumer loans | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 320 | |
Extended Maturity | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 429 | 1,026 |
Extended Maturity | Commercial real estate and consumer | Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 965 |
Extended Maturity | Commercial business loans | Commercial business | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 0 |
Extended Maturity | Consumer loans | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 429 | 0 |
Extended Maturity | Consumer loans | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 61 |
Adjusted Rate and Extended Maturity | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 259 |
Adjusted Rate and Extended Maturity | Commercial real estate and consumer | Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 0 |
Adjusted Rate and Extended Maturity | Commercial business loans | Commercial business | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 0 |
Adjusted Rate and Extended Maturity | Consumer loans | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 0 |
Adjusted Rate and Extended Maturity | Consumer loans | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 259 |
Payment Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 2,861 |
Payment Deferral | Commercial real estate and consumer | Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 0 |
Payment Deferral | Commercial business loans | Commercial business | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 0 |
Payment Deferral | Consumer loans | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 2,861 |
Payment Deferral | Consumer loans | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 0 |
Other | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 3,512 | 0 |
Other | Commercial real estate and consumer | Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 0 |
Other | Commercial business loans | Commercial business | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 3,512 | 0 |
Other | Consumer loans | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | 0 | 0 |
Other | Consumer loans | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Loan balances modified as TDRs | $ 0 | $ 0 |
Loans Receivable and Allowan_14
Loans Receivable and Allowance for Loan Losses - Summary of Loans Modified as TDRs within Previous 12 Months and Payment Default (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 3 |
Recorded Investment | $ | $ 25 | $ 440 |
Consumer loans | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 179 |
Consumer loans | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 2 |
Recorded Investment | $ | $ 25 | $ 261 |
Loans Receivable and Allowan_15
Loans Receivable and Allowance for Loan Losses - Summary of Mortgage Servicing Rights Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Mortgage servicing rights: | ||
Balance at beginning of period | $ 14,739 | $ 11,733 |
Change in fair value recognized in net income | (947) | 819 |
Issuances | 899 | 781 |
Fair value of mortgage servicing rights at end of period | $ 14,691 | $ 13,333 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019Property | Jan. 01, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Lease assets | $ | $ 46.5 | |
Lease liabilities | $ | $ 46.5 | |
Lessee, operating leases, number of branches | 70 | |
Sublessor, number of properties | 4 | |
Lessor, operating leases, number of properties | 2 | |
Lessor, lease terms, renewal options | 10 years | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, remaining lease terms | 1 year | |
Lessee, lease terms, renewal options | 5 years | |
Lessor, remaining lease terms | 2 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, remaining lease terms | 20 years | |
Lessee, lease terms, renewal options | 30 years | |
Lessor, remaining lease terms | 9 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,672 |
Finance lease cost: | |
Amortization of right-of-use assets | 89 |
Interest on lease liabilities | 63 |
Sublease income | (223) |
Lease income | (98) |
Total lease cost | $ 1,503 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Weighted Average Remaining Lease Term, Operating Leases | 12 years |
Weighted Average Remaining Lease Term, Finance Leases | 13 years |
Weighted Average Discount Rate, Operating Lease | 3.53% |
Weighted Average Discount Rate, Finance Leases | 5.44% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 (remaining nine months) | $ 5,088 |
2020 | 7,189 |
2021 | 7,021 |
2022 | 6,555 |
2023 | 5,447 |
Thereafter | 38,252 |
Total lease payments | 69,552 |
Less: imputed interest | (13,287) |
Total | 56,265 |
Finance Leases | |
2019 (remaining nine months) | 386 |
2020 | 515 |
2021 | 515 |
2022 | 515 |
2023 | 515 |
Thereafter | 3,929 |
Total lease payments | 6,375 |
Less: imputed interest | (1,790) |
Total | $ 4,585 |
Leases - Maturities of Rent Rec
Leases - Maturities of Rent Receivables (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2019 (remaining nine months) | $ 1,019 |
2020 | 1,391 |
2021 | 1,266 |
2022 | 841 |
2023 | 144 |
Thereafter | 297 |
Total lease payments received | $ 4,958 |
Goodwill and Core Deposit Int_3
Goodwill and Core Deposit Intangibles - Schedule of Goodwill and Core Deposit Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 116,727 | $ 116,769 | |
Core Deposit Intangibles | |||
Amortization expense | (420) | $ (337) | |
Balance at End of Period | 5,607 | ||
Core deposits | |||
Core Deposit Intangibles | |||
Balance at Beginning of Period | 6,027 | 4,491 | 4,491 |
Amortization expense | (420) | $ (337) | (1,350) |
Acquisitions | 2,886 | ||
Balance at End of Period | $ 5,607 | $ 6,027 |
Goodwill and Core Deposit Int_4
Goodwill and Core Deposit Intangibles - Estimated Amortization Expense (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2019 (remaining nine months) | $ 1,118 |
2020 | 1,293 |
2021 | 1,048 |
2022 | 803 |
2023 | 559 |
2024 and thereafter | 786 |
Total remaining | $ 5,607 |
Goodwill and Core Deposit Int_5
Goodwill and Core Deposit Intangibles - Additional Information (Detail) $ in Thousands | Oct. 05, 2018USD ($)branch | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets [Line Items] | ||||
Core deposit intangible amortization | $ 420 | $ 337 | ||
Six branches acquired | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Number of branches acquired | branch | 6 | |||
Branch deposits assumed | $ 109,400 | |||
Fixed assets acquired | 2,300 | |||
Purchase price | $ 6,900 | |||
Core deposits | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Core deposits estimated useful life | 10 years | |||
Core deposit intangible amortization | $ 420 | $ 337 | $ 1,350 |
Borrowings - Contractual Maturi
Borrowings - Contractual Maturities and Weighted-Average Rates of Outstanding Advances (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amount | ||
2019 | $ 685,000 | $ 785,000 |
2020 | 33,000 | 8,000 |
2021 | 15,000 | 0 |
2022 | 0 | 0 |
2023 | 2,431 | 2,557 |
Thereafter | 1,512 | 1,531 |
Total | $ 736,943 | $ 797,088 |
Weighted- Average Rate | ||
2019 (as a percent) | 2.69% | 2.55% |
2020 (as a percent) | 2.61% | 2.33% |
2021 (as a percent) | 2.80% | 0.00% |
2022 (as a percent) | 0.00% | 0.00% |
2023 (as a percent) | 2.51% | 2.51% |
Thereafter (as a percent) | 2.58% | 2.58% |
Weighted- Average | ||
Weighted- Average Rate | ||
Total (as a percent) | 2.68% | 2.54% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)loancounterpartybranch | Dec. 31, 2014USD ($) | Mar. 31, 2019USD ($)counterpartyadvance | Sep. 23, 2014USD ($) | May 01, 2014USD ($) | |
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Advances from FHLBB | $ 797,300,000 | $ 737,100,000 | |||
Fair value adjustment on FHLBB advances acquired in the Merger | 183,000 | 172,000 | |||
Estimated eligible collateral value | 2,370,000,000 | 2,250,000,000 | |||
Unsecured line of credit | 10,000,000 | 10,000,000 | |||
Additional borrowings | 590,500,000 | ||||
Other borrowings | $ 102,355,000 | 89,553,000 | |||
Number of leased banking branches with capital lease obligations | branch | 3 | ||||
Capital lease obligations | $ 3,800,000 | 4,600,000 | |||
Wholesale Reverse Repurchase Agreements | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Number of individual borrowings, wholesale reverse purchase agreements | loan | 1 | ||||
Weighted average interest rate | 2.44% | ||||
Investment securities pledged as collateral | $ 12,500,000 | ||||
Wholesale Reverse Repurchase Agreements | US Treasury and Government | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Other borrowings | 10,000,000 | 0 | |||
Retail Repurchase Agreements | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Investment securities pledged as collateral | 25,400,000 | 24,300,000 | |||
Retail Repurchase Agreements | US Treasury and Government | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Other borrowings | 8,361,000 | 9,292,000 | |||
Brokered Sweep Deposit | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Other borrowings | $ 432,500,000 | $ 388,200,000 | |||
Percentage of other borrowings at cost | 2.44% | 2.59% | |||
Number of counterparties to unused federal funds lines of credit | counterparty | 4 | 4 | |||
Committed federal funds lines of credit | $ 14,000,000 | $ 140,000,000 | |||
Subordinated Debt | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Junior subordinated debt, face amount | $ 7,700,000 | ||||
Fair value acquisition discount | 1,800,000 | 1,800,000 | $ 2,300,000 | ||
Other borrowings | 80,201,000 | 80,261,000 | |||
Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Basis spread on LIBOR rate | 1.85% | ||||
Subordinated Debt | Subordinated Notes Due October 2024 | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Subordinated notes, face amount | $ 75,000,000 | ||||
Subordinated notes, stated interest rate | 5.75% | ||||
Debt issuance cost | $ 1,300,000 | ||||
Subordinated notes, carrying value | $ 74,300,000 | $ 74,300,000 | |||
Maximum | Wholesale Reverse Repurchase Agreements | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Other borrowings remaining maturity term (or less) | 1 year | ||||
Federal Home Loan Bank, Advances, Callable Option | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Number of advances | advance | 0 |
Borrowings - Other Borrowings b
Borrowings - Other Borrowings by Category (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Other borrowings | $ 89,553 | $ 102,355 |
US Treasury and Government | Wholesale repurchase agreements | ||
Debt Instrument [Line Items] | ||
Other borrowings | 0 | 10,000 |
US Treasury and Government | Customer repurchase agreements | ||
Debt Instrument [Line Items] | ||
Other borrowings | 9,292 | 8,361 |
Subordinated debentures | ||
Debt Instrument [Line Items] | ||
Other borrowings | 80,261 | 80,201 |
Other | ||
Debt Instrument [Line Items] | ||
Other borrowings | $ 0 | $ 3,793 |
Borrowings - Outstanding Borrow
Borrowings - Outstanding Borrowings Under Repurchase Agreements (Detail) - U.S. Treasury and agency Securities - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | $ 9,292 | $ 18,361 |
Overnight | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 9,292 | 8,361 |
Up to 1 Year | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 10,000 |
1 - 3 Years | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
Greater than 3 Years | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | $ 0 | $ 0 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Notional Amount | $ 1,781,761 | $ 1,843,554 |
Estimated Fair Value, Net Asset (Liability) | (5,010) | (1,078) |
Derivatives designated as hedging instruments | Cash flow hedges | Forward starting interest rate swaps on future borrowings | ||
Derivative [Line Items] | ||
Notional Amount | $ 50,000 | |
Weighted-Average Remaining Maturity | 5 years 2 months 19 days | |
Weighted-Average Rate, Paid | 2.67% | |
Estimated Fair Value, Net Asset (Liability) | $ (356) | |
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 445,000 | $ 395,000 |
Weighted-Average Remaining Maturity | 3 years 10 months 28 days | 4 years 7 days |
Weighted-Average Rate, Received | 2.69% | 2.59% |
Weighted-Average Rate, Paid | 2.53% | 2.51% |
Estimated Fair Value, Net Asset (Liability) | $ (4,695) | $ 457 |
Derivatives not designated as hedging instruments | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 7,500 | $ 7,500 |
Weighted-Average Remaining Maturity | 7 years 3 months 13 days | 7 years 6 months 14 days |
Estimated Fair Value, Net Asset (Liability) | $ (517) | $ (686) |
Derivatives not designated as hedging instruments | Forward loan sale commitments | ||
Derivative [Line Items] | ||
Notional Amount | $ 31,127 | $ 85,043 |
Weighted-Average Remaining Maturity | 0 years | 0 years |
Estimated Fair Value, Net Asset (Liability) | $ 1 | $ (681) |
Derivatives not designated as hedging instruments | Derivative loan commitments | ||
Derivative [Line Items] | ||
Notional Amount | $ 14,734 | $ 8,491 |
Weighted-Average Remaining Maturity | 0 years | 0 years |
Estimated Fair Value, Net Asset (Liability) | $ 209 | $ 194 |
Derivatives not designated as hedging instruments | Loan level swaps - dealer | ||
Derivative [Line Items] | ||
Notional Amount | $ 633,700 | $ 640,760 |
Weighted-Average Remaining Maturity | 6 years 6 months 2 days | 6 years 10 months 17 days |
Weighted-Average Rate, Received | 4.30% | 4.20% |
Weighted-Average Rate, Paid | 4.12% | 4.10% |
Estimated Fair Value, Net Asset (Liability) | $ (7,807) | $ 2,068 |
Derivatives not designated as hedging instruments | Loan level swaps - borrowers | ||
Derivative [Line Items] | ||
Notional Amount | $ 633,700 | $ 640,760 |
Weighted-Average Remaining Maturity | 6 years 6 months 2 days | 6 years 10 months 17 days |
Weighted-Average Rate, Received | 4.12% | 4.10% |
Weighted-Average Rate, Paid | 4.30% | 4.20% |
Estimated Fair Value, Net Asset (Liability) | $ 7,800 | $ (2,074) |
Derivatives not designated as hedging instruments | Forward starting loan level swaps - dealer | ||
Derivative [Line Items] | ||
Notional Amount | $ 8,000 | $ 8,000 |
Weighted-Average Remaining Maturity | 8 years 5 months 12 days | 8 years 8 months 12 days |
Weighted-Average Rate, Paid | 5.11% | 5.11% |
Estimated Fair Value, Net Asset (Liability) | $ (198) | $ (37) |
Derivatives not designated as hedging instruments | Forward starting loan level swaps - borrower | ||
Derivative [Line Items] | ||
Notional Amount | $ 8,000 | $ 8,000 |
Weighted-Average Remaining Maturity | 8 years 5 months 12 days | 8 years 8 months 12 days |
Weighted-Average Rate, Received | 5.11% | 5.11% |
Estimated Fair Value, Net Asset (Liability) | $ 197 | $ 37 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)counterpartyborrowerderivative | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | ||
Derivative notional amount | $ 1,781,761 | $ 1,843,554 |
Fair value of net derivatives, liability position | 13,000 | |
Amount of collateral | 16,400 | |
Interest rate contract | Derivatives designated as hedging instruments | Cash flow hedges | ||
Derivative [Line Items] | ||
Expected reclassification from accumulated other comprehensive loss to interest expense during the next 12 months | $ 129 | |
Forecasted transactions, period | 60 months | |
Number of derivative instruments | derivative | 11 | |
Derivative notional amount | $ 445,000 | |
Interest rate contract | Derivatives designated as hedging instruments | Fair value hedges | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 0 | |
Interest rate contract | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 1 | |
Derivative notional amount | $ 7,500 | |
Borrower | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 86 | |
Derivative notional amount | $ 633,700 | |
Brokerage activities | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 86 | |
Derivative notional amount | $ 633,700 | |
Interest Rate Swap, Risk Participation Agreement | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 9 | |
Number of counterparties in risk participation agreements | counterparty | 4 | |
Number of borrowers involved in the risk participation agreements | borrower | 8 | |
Interest rate swap, risk participation agreement, credit enhancements provided by counterparty | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 3 | |
Derivative notional amount | $ 24,100 | |
Counterparty participation level, percentage | 36.70% | |
Interest rate swap, risk participation agreement, credit enhancements provided by the bank | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 6 | |
Derivative notional amount | $ 41,100 | |
Counterparty participation level, percentage | 31.90% | |
Forward starting loan level swaps - borrower | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 1 | |
Derivative notional amount | $ 8,000 | 8,000 |
Forward starting loan level swaps - dealer | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 1 | |
Derivative notional amount | $ 8,000 | $ 8,000 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Tabular Disclosure of Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 145 | $ 1,610 |
Derivative Liabilities | 4,840 | 1,509 |
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swaps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 145 | 1,610 |
Derivatives designated as hedging instruments | Cash flow hedges | Interest rate swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 4,840 | 1,509 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 14,367 | 11,913 |
Derivative Liabilities | 14,682 | 13,092 |
Derivatives not designated as hedging instruments | Interest rate swaps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivatives not designated as hedging instruments | Interest rate swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 517 | 686 |
Derivatives not designated as hedging instruments | Interest rate swaps | With customers | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 10,880 | 4,805 |
Derivatives not designated as hedging instruments | Interest rate swaps | With customers | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3,080 | 6,879 |
Derivatives not designated as hedging instruments | Interest rate swaps | With counterparties | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 3,080 | 6,877 |
Derivatives not designated as hedging instruments | Interest rate swaps | With counterparties | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 10,887 | 4,809 |
Derivatives not designated as hedging instruments | Forward loan sale commitments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | 0 |
Derivatives not designated as hedging instruments | Forward loan sale commitments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 681 |
Derivatives not designated as hedging instruments | Derivative loan commitments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 209 | 194 |
Derivatives not designated as hedging instruments | Derivative loan commitments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Derivatives not designated as hedging instruments | Forward starting loan level swaps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 197 | 37 |
Derivatives not designated as hedging instruments | Forward starting loan level swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 198 | $ 37 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Schedule of Effect of Derivative Instruments in Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | $ (4,573) | $ 4,432 | |
Amount of (Gains) Losses Reclassified from AOCI into Expense (Effective Portion) | [1] | 223 | (345) |
Derivatives designated as hedging instruments | Interest rate swap | Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | (4,573) | 4,432 | |
Amount of (Gains) Losses Reclassified from AOCI into Expense (Effective Portion) | (223) | 345 | |
Derivatives designated as hedging instruments | Interest rate swap | Fair value hedges | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain Recognized in Income from Derivatives | 0 | 8 | |
Amount of Gain Recognized in Income from Hedged Items | 0 | 9 | |
Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain Recognized in Income from Derivatives | 864 | (220) | |
Derivatives not designated as hedging instruments | Derivative loan commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain Recognized in Income from Derivatives | 15 | (26) | |
Derivatives not designated as hedging instruments | Interest rate swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain Recognized in Income from Derivatives | 169 | (194) | |
Derivatives not designated as hedging instruments | Forward loan sale commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain Recognized in Income from Derivatives | 682 | (5) | |
Derivatives not designated as hedging instruments | Loan level swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain Recognized in Income from Derivatives | (1) | 5 | |
Derivatives not designated as hedging instruments | Forward starting loan level swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain Recognized in Income from Derivatives | $ (1) | $ 0 | |
[1] | Amounts are included in borrowed funds interest expense in the unaudited Consolidated Statements of Net Income. Income tax (expense) benefit associated with the reclassification adjustment for the three months ended March 31, 2019 and 2018 was $(49) and $76, respectively. |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)shares | Mar. 31, 2018USD ($) | Oct. 29, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 580 | $ 718 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 4 | 5 | |
Tax benefit recorded | 1 | 1 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 576 | 713 | |
Tax benefit recorded | 127 | $ 157 | |
Options and Restricted Stock | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 59 | ||
Options and Restricted Stock | Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 521 | ||
2015 Omnibus Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized under the plan (in shares) | shares | 4,050,000 | ||
Share-based awards, fungible ratio | 2.35 | ||
Shares available for future grants (in shares) | shares | 2,124,251 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Activity Related to Stock Options (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Number of Stock Options | ||
Outstanding (in shares) | 1,386,712 | |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (51,513) | |
Forfeited or expired (in shares) | 0 | |
Outstanding (in shares) | 1,335,199 | |
Stock options vested and exercisable (in shares) | 1,326,475 | |
Weighted- Average Exercise Price | ||
Outstanding (in usd per share) | $ 11.70 | |
Granted (in usd per share) | 0 | |
Exercised (in usd per share) | 9.09 | |
Forfeited or expired (in usd per share) | 0 | |
Outstanding (in usd per share) | 11.80 | |
Stock options vested and exercisable (in usd per share) | $ 11.79 | |
Weighted-Average Remaining Contractual Term, Outstanding | 3 years 8 months 12 days | |
Weighted-Average Remaining Contractual Term, Stock options vested and exercisable | 3 years 8 months 12 days | |
Aggregate Intrinsic Value, Outstanding | $ 3.4 | |
Aggregate Intrinsic Value, Stock options vested and exercisable | $ 3.4 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Stock Options - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted (in shares) | 0 | 0 |
SAR options exercised (in shares) | 51,513 | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation cost related to outstanding stock options | $ 4 | |
Unrecognized cost related to outstanding stock options, period of recognition | 2 months | |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
SAR options exercised (in shares) | 0 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Restricted Stock - Additional Information (Detail) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock issued (in shares) | 0 | |
Weighted average grant date fair value (in usd per share) | $ 16.26 | $ 15.44 |
Unvested restricted stock, period of recognition | 2 years 1 month | |
Total unrecognized compensation cost related to unvested restricted stock | $ 4.4 | |
2015 Omnibus Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock issued (in shares) | 0 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Activity for Restricted Stock (Detail) - Restricted Stock | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of Shares | |
Unvested (in shares) | shares | 474,508 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (55,485) |
Forfeited (in shares) | shares | (37,292) |
Unvested (in shares) | shares | 381,731 |
Weighted-Average Grant-Date Fair Value | |
Unvested (in usd per share) | $ / shares | $ 15.44 |
Granted (in usd per share) | $ / shares | 0 |
Vested (in usd per share) | $ / shares | 11.34 |
Forfeited (in usd per share) | $ / shares | 13.19 |
Unvested (in usd per share) | $ / shares | $ 16.26 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Interest rate for the ESOP loans | 1.00% | |
ESOP compensation expense | $ 86 | $ 95 |
ESOP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Borrowings from the company | $ 7,100 | |
Purchase of common stock (in shares) | 684,395 | |
Outstanding loan balance | $ 5,900 | |
Bank's discretionary contributions, remaining period | 22 years |
Stock-Based Compensation Plan_8
Stock-Based Compensation Plans - ESOP Shares (Detail) $ in Thousands | Mar. 31, 2019USD ($)shares |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Allocated shares (in shares) | 1,243,678 |
Shares allocated for release (in shares) | 5,703 |
Unreleased shares (in shares) | 496,187 |
Total ESOP shares (in shares) | 1,745,568 |
Market value of unreleased shares | $ | $ 7,120 |
Regulatory Matters (Detail)
Regulatory Matters (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Tier 1 capital to total average assets | ||
Amount available for the payment of dividends | $ 79,900 | $ 135,000 |
United Bank | ||
Total capital to risk weighted assets | ||
Total capital to risk weighted assets, Actual, Amount | $ 689,517 | $ 694,633 |
Total capital to risk weighted assets, Actual, Ratio | 11.70% | 11.87% |
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount | $ 471,465 | $ 466,980 |
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 589,331 | $ 583,725 |
Total capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Common equity tier 1 capital to risk weighted assets | ||
Common equity tier 1 capital to risk weighted assets, Actual, Amount | $ 635,148 | $ 640,773 |
Common equity tier 1 capital to risk weighted assets, Actual, Ratio | 10.78% | 10.95% |
Common equity tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount | $ 265,136 | $ 264,539 |
Common equity tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common equity tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 382,974 | $ 382,112 |
Common equity tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 capital to risk weighted assets | ||
Tier 1 capital to risk weighted assets, Actual, Amount | $ 635,148 | $ 640,773 |
Tier 1 capital to risk weighted assets, Actual, Ratio | 10.78% | 10.95% |
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount | $ 353,515 | $ 352,719 |
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 471,353 | $ 470,292 |
Tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Tier 1 capital to total average assets | ||
Tier 1 capital to total average assets, Actual, Amount | $ 635,148 | $ 640,773 |
Tier 1 capital to total average assets, Actual, Ratio | 8.77% | 8.99% |
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Amount | $ 289,691 | $ 284,788 |
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 capital to total average assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 362,114 | $ 355,985 |
Tier 1 capital to total average assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
United Financial Bancorp, Inc. | ||
Total capital to risk weighted assets | ||
Total capital to risk weighted assets, Actual, Amount | $ 739,571 | $ 739,322 |
Total capital to risk weighted assets, Actual, Ratio | 12.52% | 12.60% |
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount | $ 472,569 | $ 469,411 |
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Common equity tier 1 capital to risk weighted assets | ||
Common equity tier 1 capital to risk weighted assets, Actual, Amount | $ 610,202 | $ 610,462 |
Common equity tier 1 capital to risk weighted assets, Actual, Ratio | 10.33% | 10.40% |
Common equity tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount | $ 265,819 | $ 264,142 |
Common equity tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Tier 1 capital to risk weighted assets | ||
Tier 1 capital to risk weighted assets, Actual, Amount | $ 610,202 | $ 610,462 |
Tier 1 capital to risk weighted assets, Actual, Ratio | 10.33% | 10.40% |
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount | $ 354,425 | $ 352,190 |
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier 1 capital to total average assets | ||
Tier 1 capital to total average assets, Actual, Amount | $ 610,202 | $ 610,462 |
Tier 1 capital to total average assets, Actual, Ratio | 8.43% | 8.43% |
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Amount | $ 289,538 | $ 290,696 |
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Jan. 01, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total stockholders’ equity | $ 724,098 | $ 712,518 | $ 693,000 | $ 693,328 | |
Benefit plans | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net unrealized (loss) gain | (7,720) | (7,861) | |||
Tax effect | 1,701 | 1,731 | |||
Total stockholders’ equity | (6,019) | (6,130) | |||
Securities available-for-sale | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net unrealized (loss) gain | (8,215) | (31,248) | |||
Tax effect | 1,810 | 6,885 | |||
Total stockholders’ equity | (6,405) | (24,363) | |||
Interest rate swaps | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net unrealized (loss) gain | (4,695) | 101 | |||
Tax effect | 1,034 | (22) | |||
Total stockholders’ equity | (3,661) | 79 | |||
AOCI Attributable to Parent | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total stockholders’ equity | (16,085) | (30,414) | (23,957) | (11,840) | |
One-time reclassification | $ (2,600) | ||||
Retained Earnings | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total stockholders’ equity | $ 203,156 | $ 206,761 | $ 180,777 | $ 168,345 | |
One-time reclassification | $ 2,600 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders | $ 12,657 | $ 15,787 |
Weighted-average common shares outstanding (in shares) | 51,114,984 | 50,997,681 |
Less: average number of unallocated ESOP award shares (in shares) | (499,925) | (522,739) |
Weighted-average basic shares outstanding (in shares) | 50,615,059 | 50,474,942 |
Dilutive effect of stock options (in shares) | 292,033 | 521,654 |
Weighted-average diluted shares (in shares) | 50,907,092 | 50,996,596 |
Net income per share: | ||
Basic (in usd per share) | $ 0.25 | $ 0.31 |
Diluted (in usd per share) | $ 0.25 | $ 0.31 |
Anti-dilutive stock options excluded from diluted earnings per share calculation (in shares) | 0 | 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Aggregate principal amount of residential real estate mortgage loans held for sale | $ 16,400,000 | $ 76,600,000 | |
Aggregate fair value of mortgage loans held for sale | 16,200,000 | 78,800,000 | |
Residential real estate mortgage loans held for sale 90 days or more past due | 0 | 0 | |
Transfers in and out of Level 1, Level 2 and Level 3 measurements | $ 0 | $ 0 | |
Fixed rate mortgage loans term | 30 years | ||
Maturity period, Term 1 | 10 years | ||
Maturity period, Term 2 | 15 years | ||
Maturity period, Term 3 | 20 years | ||
Estimated fallout rate based upon historical averages | 18.40% | ||
Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities measured at fair value on a non-recurring basis | $ 0 | $ 0 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Fair Value of Mortgage Loans Held for Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Gain From Sales of Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage loans held for sale | $ (871) | $ (1,257) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Recorded at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | $ 848,541 | $ 973,347 | ||
Marketable equity securities | 409 | 356 | ||
Mortgage servicing rights | 14,691 | 14,739 | $ 13,333 | $ 11,733 |
Government-sponsored residential mortgage-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 201,930 | 204,098 | ||
Government-sponsored residential collateralized debt obligations | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 131,527 | 170,719 | ||
Government-sponsored commercial mortgage-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 28,404 | 27,678 | ||
Government-sponsored commercial collateralized debt obligations | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 145,951 | 148,226 | ||
Asset-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 158,171 | 100,495 | ||
Corporate debt securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 94,466 | 83,230 | ||
Obligations of states and political subdivisions | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 88,092 | 238,901 | ||
Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 158,171 | |||
Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | |||
Recurring | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 848,541 | 973,347 | ||
Recurring | Mortgage loan derivative assets and liabilities | ||||
Available-for-Sale Securities: | ||||
Mortgage loan derivative assets | 210 | 194 | ||
Mortgage loan derivative liabilities | 681 | |||
Loans held for sale | 16,172 | 78,788 | ||
Marketable equity securities | 409 | 356 | ||
Recurring | Government-sponsored residential mortgage-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 201,930 | 204,098 | ||
Recurring | Government-sponsored residential collateralized debt obligations | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 131,527 | 170,719 | ||
Recurring | Government-sponsored commercial mortgage-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 28,404 | 27,678 | ||
Recurring | Government-sponsored commercial collateralized debt obligations | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 145,951 | 148,226 | ||
Recurring | Asset-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 158,171 | 100,495 | ||
Recurring | Corporate debt securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 94,466 | 83,230 | ||
Recurring | Obligations of states and political subdivisions | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 88,092 | 238,901 | ||
Recurring | Mortgage servicing rights | ||||
Available-for-Sale Securities: | ||||
Mortgage servicing rights | 14,691 | 14,739 | ||
Recurring | Interest rate swaps | ||||
Available-for-Sale Securities: | ||||
Interest rate swap assets | 14,302 | 13,329 | ||
Interest rate swap liabilities | 19,522 | 13,920 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage loan derivative assets and liabilities | ||||
Available-for-Sale Securities: | ||||
Mortgage loan derivative assets | 0 | 0 | ||
Mortgage loan derivative liabilities | 0 | |||
Loans held for sale | 0 | 0 | ||
Marketable equity securities | 409 | 356 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored residential mortgage-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored residential collateralized debt obligations | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored commercial mortgage-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored commercial collateralized debt obligations | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights | ||||
Available-for-Sale Securities: | ||||
Mortgage servicing rights | 0 | 0 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps | ||||
Available-for-Sale Securities: | ||||
Interest rate swap assets | 0 | 0 | ||
Interest rate swap liabilities | 0 | 0 | ||
Recurring | Other Observable Inputs (Level 2) | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 690,370 | 872,852 | ||
Recurring | Other Observable Inputs (Level 2) | Mortgage loan derivative assets and liabilities | ||||
Available-for-Sale Securities: | ||||
Mortgage loan derivative assets | 210 | 194 | ||
Mortgage loan derivative liabilities | 681 | |||
Loans held for sale | 16,172 | 78,788 | ||
Marketable equity securities | 0 | 0 | ||
Recurring | Other Observable Inputs (Level 2) | Government-sponsored residential mortgage-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 201,930 | 204,098 | ||
Recurring | Other Observable Inputs (Level 2) | Government-sponsored residential collateralized debt obligations | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 131,527 | 170,719 | ||
Recurring | Other Observable Inputs (Level 2) | Government-sponsored commercial mortgage-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 28,404 | 27,678 | ||
Recurring | Other Observable Inputs (Level 2) | Government-sponsored commercial collateralized debt obligations | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 145,951 | 148,226 | ||
Recurring | Other Observable Inputs (Level 2) | Asset-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Other Observable Inputs (Level 2) | Corporate debt securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 94,466 | 83,230 | ||
Recurring | Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 88,092 | 238,901 | ||
Recurring | Other Observable Inputs (Level 2) | Mortgage servicing rights | ||||
Available-for-Sale Securities: | ||||
Mortgage servicing rights | 0 | 0 | ||
Recurring | Other Observable Inputs (Level 2) | Interest rate swaps | ||||
Available-for-Sale Securities: | ||||
Interest rate swap assets | 14,302 | 13,329 | ||
Interest rate swap liabilities | 19,522 | 13,920 | ||
Recurring | Significant Unobservable Inputs (Level 3) | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 158,171 | 100,495 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage loan derivative assets and liabilities | ||||
Available-for-Sale Securities: | ||||
Mortgage loan derivative assets | 0 | 0 | ||
Mortgage loan derivative liabilities | 0 | |||
Loans held for sale | 0 | 0 | ||
Marketable equity securities | 0 | 0 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored residential mortgage-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored residential collateralized debt obligations | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored commercial mortgage-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored commercial collateralized debt obligations | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 100,495 | |||
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | |||
Recurring | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions | ||||
Available-for-Sale Securities: | ||||
Total available-for-sale debt securities | 0 | 0 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||||
Available-for-Sale Securities: | ||||
Mortgage servicing rights | 14,691 | 14,739 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swaps | ||||
Available-for-Sale Securities: | ||||
Interest rate swap assets | 0 | 0 | ||
Interest rate swap liabilities | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs (Detail) - Recurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 14,739 | $ 11,733 |
Issuances | 899 | 781 |
Total realized gains (losses) included in earnings / Change in fair value recognized in net income | (947) | 819 |
Balance at end of period | 14,691 | 13,333 |
Available for Sale Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 100,495 | 167,139 |
Purchases (sales) | 57,021 | (55,706) |
Principal payments and net accretion | (11) | (77) |
Total realized gains (losses) included in earnings / Change in fair value recognized in net income | 0 | (149) |
Total unrealized gains (losses) included in other comprehensive income/loss | 666 | (18) |
Balance at end of period | $ 158,171 | $ 111,189 |
Fair Value Measurements - Add_2
Fair Value Measurements - Additional Quantitative Information of Assets Measured at Fair Value on a Recurring Basis (Detail) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 848,541,000 | $ 973,347,000 |
Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 158,171,000 | $ 100,495,000 |
Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 158,171,000 | |
Asset-backed securities | Discount Rate | Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Asset-backed securities | 0.035 | |
Asset-backed securities | Discount Rate | Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Asset-backed securities | 0.065 | |
Asset-backed securities | Discount Rate | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Asset-backed securities | 0.0443 | |
Asset-backed securities | Cumulative Default % | Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Asset-backed securities | 0.002 | |
Asset-backed securities | Cumulative Default % | Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Asset-backed securities | 0.141 | |
Asset-backed securities | Cumulative Default % | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Asset-backed securities | 0.0908 | |
Asset-backed securities | Loss Given Default | Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Asset-backed securities | 0.001 | |
Asset-backed securities | Loss Given Default | Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Asset-backed securities | 0.046 | |
Asset-backed securities | Loss Given Default | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Asset-backed securities | 0.0279 | |
Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value, Mortgage Servicing Rights | $ 14,691,000 | |
Mortgage servicing rights | Discount Rate | Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Mortgage Servicing Rights | 0.110 | |
Mortgage servicing rights | Discount Rate | Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Mortgage Servicing Rights | 0.155 | |
Mortgage servicing rights | Discount Rate | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Mortgage Servicing Rights | 0.1283 | |
Mortgage servicing rights | Cost to Service | Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Mortgage Servicing Rights | 75 | |
Mortgage servicing rights | Cost to Service | Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Mortgage Servicing Rights | 135 | |
Mortgage servicing rights | Cost to Service | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Mortgage Servicing Rights | 88.08 | |
Mortgage servicing rights | Float Earnings Rate | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Mortgage Servicing Rights | 0.0150 | |
Mortgage servicing rights | Float Earnings Rate | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Input, Mortgage Servicing Rights | 0.0150 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Recorded at Fair Value on Non-Recurring Basis (Detail) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 494 | $ 2,847 |
Other real estate owned | 1,429 | 1,389 |
Total | 1,923 | 4,236 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Total | 0 | 0 |
Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 494 | 2,847 |
Other real estate owned | 1,429 | 1,389 |
Total | $ 1,923 | $ 4,236 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Gains (Losses) on Assets Recorded at Fair Value on Non-Recurring Basis (Detail) - Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ (27) | $ (100) |
Other real estate owned | (22) | (50) |
Total | $ (49) | $ (150) |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Carrying Value and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Available-for-sale securities | $ 848,541 | $ 973,347 |
Loans held for sale | 16,200 | 78,800 |
Marketable equity securities | 409 | 356 |
Financial liabilities: | ||
FHLBB advances and other borrowings | 737,115 | 797,271 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 155,173 | 97,964 |
Available-for-sale securities | 848,541 | |
Available-for-sale securities | 973,347 | |
Loans held for sale | 16,172 | 78,788 |
Loans receivable-net | 5,697,442 | 5,622,589 |
FHLBB stock | 37,702 | 41,407 |
Accrued interest receivable | 25,061 | 24,823 |
Derivative assets | 14,512 | 13,523 |
Mortgage servicing rights | 14,691 | 14,739 |
Marketable equity securities | 409 | 356 |
Financial liabilities: | ||
Deposits | 5,664,252 | 5,670,599 |
Mortgagors’ and investors’ escrow accounts | 11,510 | 4,685 |
FHLBB advances and other borrowings | 826,668 | 899,626 |
Derivative liabilities | 19,522 | 14,601 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 155,173 | 97,964 |
Available-for-sale securities | 848,541 | |
Available-for-sale securities | 973,347 | |
Loans held for sale | 16,172 | 78,788 |
Loans receivable-net | 5,611,760 | 5,533,626 |
FHLBB stock | 37,702 | 41,407 |
Accrued interest receivable | 25,061 | 24,823 |
Derivative assets | 14,512 | 13,523 |
Mortgage servicing rights | 14,691 | 14,739 |
Marketable equity securities | 409 | 356 |
Financial liabilities: | ||
Deposits | 5,660,505 | 5,661,129 |
Mortgagors’ and investors’ escrow accounts | 11,510 | 4,685 |
FHLBB advances and other borrowings | 827,451 | 900,146 |
Derivative liabilities | 19,522 | 14,601 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 155,173 | 97,964 |
Available-for-sale securities | 0 | |
Available-for-sale securities | 0 | |
Loans held for sale | 0 | 0 |
Loans receivable-net | 0 | 0 |
FHLBB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Marketable equity securities | 409 | 356 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Mortgagors’ and investors’ escrow accounts | 0 | 0 |
FHLBB advances and other borrowings | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value | Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 690,370 | |
Available-for-sale securities | 872,852 | |
Loans held for sale | 16,172 | 78,788 |
Loans receivable-net | 0 | 0 |
FHLBB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 14,512 | 13,523 |
Mortgage servicing rights | 0 | 0 |
Marketable equity securities | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Mortgagors’ and investors’ escrow accounts | 0 | 0 |
FHLBB advances and other borrowings | 827,451 | 900,146 |
Derivative liabilities | 19,522 | 14,601 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 158,171 | |
Available-for-sale securities | 100,495 | |
Loans held for sale | 0 | 0 |
Loans receivable-net | 5,611,760 | 5,533,626 |
FHLBB stock | 37,702 | 41,407 |
Accrued interest receivable | 25,061 | 24,823 |
Derivative assets | 0 | 0 |
Mortgage servicing rights | 14,691 | 14,739 |
Marketable equity securities | 0 | 0 |
Financial liabilities: | ||
Deposits | 5,660,505 | 5,661,129 |
Mortgagors’ and investors’ escrow accounts | 11,510 | 4,685 |
FHLBB advances and other borrowings | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Financial Instruments Contract Amounts Represent Credit Risk (Detail) - Commitments to extend credit - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | ||
Commitments to extend credit, amount | $ 1,414,617 | $ 1,269,445 |
Commitment to grant loans | ||
Other Commitments [Line Items] | ||
Commitments to extend credit, amount | 146,342 | 140,875 |
Undisbursed construction loans | ||
Other Commitments [Line Items] | ||
Commitments to extend credit, amount | 145,918 | 122,838 |
Undisbursed home equity lines of credit | ||
Other Commitments [Line Items] | ||
Commitments to extend credit, amount | 461,316 | 453,634 |
Undisbursed commercial lines of credit | ||
Other Commitments [Line Items] | ||
Commitments to extend credit, amount | 619,575 | 515,193 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Commitments to extend credit, amount | 17,567 | 13,252 |
Unused credit card lines | ||
Other Commitments [Line Items] | ||
Commitments to extend credit, amount | 21,468 | 21,331 |
Unused checking overdraft lines of credit | ||
Other Commitments [Line Items] | ||
Commitments to extend credit, amount | $ 2,431 | $ 2,322 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - Tax credit partnership $ in Millions | Mar. 31, 2019USD ($) |
Other Commitments [Line Items] | |
Net carrying balance of investments | $ 51.8 |
Capital contribution commitments | $ 3.5 |
Investment in D.C. Solar Tax-_3
Investment in D.C. Solar Tax-Advantaged Funds - Additional Information (Details) - The LLCs $ in Millions | Mar. 31, 2019USD ($)generator |
Schedule of Equity Method Investments [Line Items] | |
Number of mobile solar generators | generator | 500 |
Potential risk of loss | $ | $ 41.7 |
Investment in D.C. Solar Tax-_4
Investment in D.C. Solar Tax-Advantaged Funds - Additional Information on Risk of Investment in Tax-Advantage Funds (Details) | Mar. 31, 2019 | Dec. 31, 2018 |
United Financial Bancorp, Inc. | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tangible Common Equity to Tangible Assets | 10.33% | 8.15% |
Tier 1 Capital Ratio | 10.33% | 10.40% |
Total Capital to Risk Weighted Assets Ratio | 12.52% | 12.60% |
Tier 1 to Total Average Assets Ratio | 8.43% | 8.43% |
United Financial Bancorp, Inc. | Proforma | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tangible Common Equity to Tangible Assets | 7.80% | |
Tier 1 Capital Ratio | 9.76% | |
Total Capital to Risk Weighted Assets Ratio | 11.97% | |
Tier 1 to Total Average Assets Ratio | 7.79% | |
United Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Capital Ratio | 10.78% | 10.95% |
Total Capital to Risk Weighted Assets Ratio | 11.70% | 11.87% |
Tier 1 to Total Average Assets Ratio | 8.77% | 8.99% |
United Bank | Proforma | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Capital Ratio | 10.72% | |
Total Capital to Risk Weighted Assets Ratio | 11.66% | |
Tier 1 to Total Average Assets Ratio | 8.68% |
Uncategorized Items - ubnk-2019
Label | Element | Value |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 177,000 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (177,000) |
Accounting Standards Update 2017-08 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (10,187,000) |
Accounting Standards Update 2017-08 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (10,187,000) |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,590,000 |
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,590,000) |